Match Each of the Following Events Considered Independently to Its

question 60

Multiple Choice

Match each of the following events considered independently to its likely effect on WillCo's various apportionment factors. WillCo is based in Q and has customers in Q, R, and S. To this point, WillCo has not established nexus with S. More than one choice may be correct.
-Q adopts a sales-only apportionment formula.

• A)No change in apportionment factors
• B)Q apportionment factor increases
• C)Q apportionment factor decreases
• D)R apportionment factor increases
• E)R apportionment factor decreases
• F)S apportionment factor increases
• G)S apportionment factor decreases

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Definitions:

Cost Of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Weighted Average

A calculation method that takes into account the varying degrees of importance of the numbers in a data set, resulting in a figure that represents the overall effect.

Average Unit Cost

The total cost of goods available for sale divided by the number of units available for sale, used to value inventory.