Allocating Indirect Costs to Departments Based on the Relative Revenue

question 141

Multiple Choice

Allocating indirect costs to departments based on the relative revenue earned by those departments is done based on which of the following criterion?

• A) direct hours utilized
• B) benefits received
• C) material resources used
• D) cause-and-effect relationships

Recognize the financial standards and preferences for reporting operating activities in the statement of cash flows by the Financial Accounting Standards Board (FASB).

Distinguish between cash inflows and outflows within each category of the statement of cash flows.

Identify the impact of changes in current assets and liabilities on cash flows from operating activities.

Recognize and differentiate between gains, sales, and losses on sales or disposals of assets and their effect on the statement of cash flows.

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