Support Department Costs Are Accounted for in Which One of the Following

question 1

Multiple Choice

Support department costs are accounted for in which one of the following ways?

• A)They are allocated directly to units of product.
• B)They are allocated to producing departments and then allocated to units of product.
• C)They are allocated to units of product and then allocated to the producing departments.
• D)They are expensed as incurred.

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax, a mandatory payroll deduction in the United States funding Social Security and Medicare benefits.

State Unemployment Tax

A tax levied by state governments on businesses to fund unemployment insurance benefits for workers who have lost their jobs.

Employee Withholding

The portion of an employee's wages deducted by the employer for taxes, social security, and other benefits, and paid directly to the government.