Which of the Following Costs Probably Should Not Be Allocated

question 95

Multiple Choice

Which of the following costs probably should not be allocated to the investment needed for a new project?

• A)increase in accounts receivable.
• B)new warehouse, built for this project.
• C)25 percent of the vice president's salary.
• D)labour expense for employees in new warehouse.

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Definitions:

Internal Control

Methods and protocols established by an enterprise to protect the veracity of its financial and accounting reports, support ethical conduct, and prevent malfeasance.

Electronic Funds Transfer

Electronic Funds Transfer (EFT) is the digital transfer of money from one bank account to another, either within the same financial institution or across different institutions.

Disbursement System

The system and processes involved in paying out money from an organization or fund.

Original Entry

The initial recording of a financial transaction in the accounting records or journal, marking the first stage in the accounting process.