If a Company Allocates Costs of Central Services Based on Sales,________

question 21

Multiple Choice

If a company allocates costs of central services based on sales,________ should be used as the allocation base.

• A)actual usage
• B)estimated usage
• C)actual sales
• D)budgeted sales

---

Definitions:

1099-MISC

A tax form used to report miscellaneous income, including fees, royalties, or rent, paid to a non-employee.

Self-Employment Tax

A levy that encompasses Social Security and Medicare contributions, mainly targeted at individuals who are self-employed.

Pharmaceutical Company

A business involved in the research, development, manufacturing, and distribution of medications.

Self-Employment Income

Self-Employment Income refers to earnings derived from one’s own business, professional practice, or freelance work, as opposed to earning a salary or wages from an employer.