An Activity Base Is Used to Charge Service Department Expenses

question 123

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 miles

• 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:

Inventory Turnover

A financial metric that measures the rate at which a company sells and replaces its stock of goods over a period, indicating efficiency in sales and inventory management.

Interest Earned

The income received from investing in interest-bearing financial instruments or accounts.

Net Income

The total profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenue.

Interest Expense

The cost incurred by an entity for borrowed funds over a specific period, including loans, bonds, or lines of credit.