The Logical Cost Driver for Building Rent Cost of $10,000

question 116

True/False

The logical cost driver for building rent cost of $10,000 is square feet.The cost object is the assembly department in a factory.

---

Definitions:

Pushdown Accounting

An accounting method where the purchase price of an acquired entity is pushed down onto the acquired entity's financial statements.

FASB Accounting Standards

Stands for Financial Accounting Standards Board Accounting Standards, which set the rules for financial accounting and reporting in the U.S.

Business Combinations

The process by which one company acquires control over another, resulting in the consolidation of assets and liabilities under one entity.

Fair Value

An estimate of the market value of an asset or liability, based on the price that two informed and willing parties would agree to in an arm's length transaction.