What Term Is Used to Describe the Lowest Point of a Business

question 393

Multiple Choice

What term is used to describe the lowest point of a business cycle?

• A) peak
• B) trough
• C) expansion
• D) recession

Differentiate between the step-down and direct methods of cost allocation.

Calculate total department costs after service department costs allocations using step-down method.

Calculate total department costs after service department costs allocations using the direct method.

Apply cost allocation principles based on different allocation bases such as square footage, employee numbers, personnel costs, and labor hours.

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Definitions:

Vacation Time

Vacation time is the period an employee is allowed to be away from work for rest or leisure, which is typically compensated and agreed upon by the employer.

Voting Leave

Employment leave provided to employees to cast their vote in public elections without losing pay.

Post-Retirement Benefits

Benefits, besides pensions, that an employer provides to retirees, which could include health insurance, life insurance, and other perks.

Life Insurance

A financial product that provides a monetary payout to beneficiaries upon the death of the insured person.