Solved

Match the Appropriate Shared Cost Categories with the Appropriate Allocation

Question 63

Matching

Match the appropriate shared cost categories with the appropriate allocation bases (a)through (e):

Premises:

Responses:

Office expense

Number of items processed.

Rent

Square footage of floor space.

Utilities expense

Not an allocated cost.

Data processing costs

Sales in department.

Cleaning costs

Time spent/used in department.

Advertising

Number of employees in department.

Payroll processing costs

Depreciation on departmental equipment

Premises:

Office expense

Rent

Utilities expense

Data processing costs

Cleaning costs

Advertising

Payroll processing costs

Depreciation on departmental equipment

Responses:

Number of items processed.

Square footage of floor space.

Not an allocated cost.

Sales in department.

Time spent/used in department.

Number of employees in department.

Correct Answer:

Premises:

Responses:

Office expense

Rent

Utilities expense

Data processing costs

Cleaning costs

Advertising

Payroll processing costs

Depreciation on departmental equipment