An Activity Base Is Used to Charge Service Department Expenses

question 9

Multiple Choice

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) .
-Number of purchase requisitions

• A)Purchasing
• B)Payroll Accounting
• C)Human Resources
• D)Maintenance
• E)Information Systems
• F)Marketing
• G)President's Office
• H)Transportation

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Definitions:

Tax Basis

The value of an asset for tax purposes, used to calculate capital gains or losses upon disposition of the asset.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Reportable Segment

A part of an organization distinguished by its business activities, products, or services, which is significant enough to require separate financial reporting under financial reporting standards.

Revenues

The total amount of income generated by the sale of goods or services related to the company's primary operations.