Which of the Following Is an Appropriate Base to Distribute

question 51

Multiple Choice

Which of the following is an appropriate base to distribute the cost of building depreciation to responsibility centers?

• A) Number of employees in the responsibility centers.
• B) Budgeted sales dollars of the responsibility centers.
• C) Square feet occupied by the responsibility centers.
• D) Budgeted net income of the responsibility centers.
• E) Total budgeted direct operating costs of the responsibility centers.

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Definitions:

Fixed-Rate Tax-Deferred

Describes investment accounts or financial products that accumulate earnings taxed at a later date instead of when they are earned, with a fixed interest rate.

Savings Plan

A program that allows individuals to allocate a portion of their income for long-term savings or investments.

Purchasing Power Risk

The risk that the value of money will decrease over time, eroding the real value of investments and returns.

Conservative Investment

An investment strategy that prioritizes the preservation of capital and a steady flow of income, typically involving lower-risk securities such as bonds or high-quality stocks.