The Conservatism Convention Should Not Be Used When the Accountant

question 61

True/False

The conservatism convention should not be used when the accountant is certain of a particular measure.

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Definitions:

Service Center

A department or facility providing support services to other units within an organization, often not directly generating profit.

Cost Center

A department or segment of a business wherein costs can be directly attributed, but which does not directly generate revenue.

Allocation Basis

Allocation basis is a criterion used to distribute costs among different departments, products, or activities based on their use or consumption.

Departmental Costs

Costs that are attributed directly to a specific department within an organization.