To Discourage Unnecessary Use of a Support Department, Management Might

question 146

Multiple Choice

To discourage unnecessary use of a support department, management might ________.

• A) allocate user department costs based upon support department usage
• B) allocate support department costs based upon user department usage
• C) allocate a fixed amount of support department costs to each and every department
• D) allocate a fixed amount of user department costs to each and every department

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Definitions:

Carrying Amount

The book value of assets and liabilities reported in the financial statements, considering depreciation or amortization.

Accounts Receivable

Funds that customers have yet to pay a company for the products or services they have received.

Contra Account

An account used in the ledger to offset the balance of a related account.