Dual Allocation Is a Cost Allocation Approach That Separates Direct

question 76

Multiple Choice

Dual allocation is a cost allocation approach that separates direct and indirect costs,tracing the direct costs directly to the department that:

• A)Can bear the cost.
• B)Relates best to the cost.
• C)Is first identified with the cost.
• D)Caused the cost.
• E)Is most impacted by the cost.

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Definitions:

Supplies

Supplies refer to the materials and items that are used in the daily operations of a business, office, or institution, often consumable and requiring regular replenishment.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to check the equality of debits and credits and prepare financial statements.

Revenue Accounts

Accounts in financial accounting that represent the income generated by a company from its operational activities.

Expense Accounts

These are ledger accounts that track the costs incurred by a company in the course of doing business, excluding capital expenditures.