Which of the Following Could Be Used as a Basis

question 83

Multiple Choice

Which of the following could be used as a basis to allocate profits among partners who are active in the management of the partnership?
1) allocation of salaries.
2) the number of years with the partnership.
3) the amount of time each partner works.
4) the average capital invested.

• A) 1 and 2.
• B) 1 and 3.
• C) 1, 2, and 4.
• D) 1, 3, and 4.
• E) 1, 2, 3, and 4.

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Definitions:

Direct Labor

Labor costs directly tied to the production of goods or services, including wages for workers who assemble products or operate machinery.

Direct Labor

The cost of wages for employees who are directly involved in producing a product or delivering a service.

Raw Material

The basic material from which a product is made, typically unprocessed or minimally processed substances used in manufacturing.

Direct Labor

Refers to the wages or salaries paid to workers directly involved in the production of goods or services.