When Selecting a Method of Cost Apportionment an Accountant Should

question 41

Multiple Choice

When selecting a method of cost apportionment an accountant should choose:

• A) the method that best reflects how the asset is used, taking into account its total physical life.
• B) the method that produces the best profit for the firm.
• C) the method stipulated by the taxation department for submitting tax returns.
• D) the method that best reflects the economic use of the asset.

Determine the standard time for operations when factoring in constant and variable allowances.

Recompute standard times with adjusted allowances to understand the impact of changing allowance values.

Understand the relationship between observed times, performance ratings, and allowances in determining standard times.

Analyze changes to time measurements based on modifications to activity descriptions or conditions.

---

Definitions:

Laissez-faire Market

An economic model where exchanges between individuals or businesses are not subject to governmental regulations, preferential treatments, duties, or financial support.

Economics

The social science that studies the production, distribution, and consumption of goods and services.

Sociology

The study of social behavior, society, patterns of social relationships, social interaction, and culture that surrounds everyday life.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, real income, employment, industrial production, and wholesale-retail sales.