TABLE 22.1 Use the Information to Answer Following Question(s)

question 15

Multiple Choice

TABLE 22.1
Use the information to answer following question(s) .
Polaris Corporation Balance Sheet December 31, 20xx

-Refer to Table 22.1. The NWC for Polaris is ________.

• A) $80,000
• B) $680,000
• C) $35,000
• D) $45,000

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Definitions:

Step-Down Method

An accounting method used in cost allocation that sequentially allocates service department costs to other departments, including production ones.

Support Department

A division within an organization that provides essential services or support to the primary operations or profit centers.

Finishing Department

The section in manufacturing where products undergo final processing, assembly, or completion.

Cost Allocated

The distribution of indirect costs to different cost objects, to fairly attribute overhead expenses to products or services.