What are four criteria that a valid base for allocating costs should consider?
The four criteria are as follows:
1 . Benefit the revenue-producing department receives from the service department
2 . Causal relationship existing between factors in the revenue-producing department
3 . Fairness or equity of the allocations between revenue-producing departments
4 . Ability of revenue-producing departments to bear the allocated costs
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Define planning. List and briefly discuss the two types of planning managers perform.
What will be an ideal response?
If the amount of a liability cannot be exactly determined, it should not be recorded
Indicate whether the statement is true or false
Increases in discretionary income can occur as a result of all of the following EXCEPT:
A. a decrease in taxes. B. an increase in interest rates. C. a decrease in housing costs. D. an increase in gross income. E. an increase in disposable income.
A surety can be required to pay an obligation only after the principal debtor defaults and usually only after the creditor has made an attempt to collect from the debtor
Indicate whether the statement is true or false