When a Company Recognises a Depreciation Credit Resulting from a Review

question 23

Multiple Choice

When a company recognises a depreciation credit resulting from a review of the estimated residual value of a depreciable asset, the depreciation debit should be recognised in accumulated depreciation and the depreciation credit should be recognised:

• A) in the opening balance of retained earnings
• B) in the depreciation expense
• C) directly in the depreciable asset account
• D) as a gain in the current period.

Understand the principles of allocating service department costs to operating departments.

Analyze the impact of different allocation methods on departmental performance evaluations.

Calculate variable and fixed service department costs based on operational data.

Determine unallocated service department costs at year-end.

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Definitions:

Congress of Industrial Organizations

A federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955, when it merged with the American Federation of Labor.

Steel Industry

A crucial global industry involved in the production and manufacturing of steel, a critical material used in construction, automotive, and other sectors.

Knights of Labor

A significant 19th-century labor organization in the United States that aimed to promote workers' rights.

Resistance Point

In negotiations, the resistance point is the worst outcome that a party is willing to accept before walking away from the negotiation table.