When the step-down method is used, the service department whose costs are allocated first is often the department that:

A. serves the greatest number of other service departments.
B. is the newest.
C. obtains the highest yield.
D. serves the fewest other service departments.
E. has the lowest cost.


Answer: A

Business

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What will be an ideal response?

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The generation-skipping tax is designed to accomplish which of the following?

A. Generate additional revenues to supplement the estate tax. B. Eliminate the possibility that the estate tax can be avoided by gifts in contemplation of death. C. Replace the gift tax on distributions from trusts. D. Prevent the avoidance of transfer taxes (both estate and gift tax) through transfers that skip a generation of recipients. E. None of the choices are correct.

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Indicate whether the statement is true or false

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