Which of the Following Is Not a Reason to Justify

question 88

Multiple Choice

Which of the following is not a reason to justify the allocation of support services?

• A) Tax reporting requirements.
• B) Influencing behavior of employees.
• C) To trace costs to the activity that created the costs.
• D) Cost based contracts.

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Definitions:

Merchandise Inventory

Goods that a company holds for the purpose of selling them to customers, often a significant current asset on the balance sheet.

Accounts Payable

Liabilities of a business that represent money owed to creditors for goods and services purchased on credit.

Accounts Payable

the amount a company owes to suppliers or creditors for goods and services bought on credit.

Inventory Decrease

A reduction in the quantity or value of inventory held by a business over a specific period.