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Match the Appropriate Shared Cost Categories with the Appropriate Allocation

Question 11

Matching

Match the appropriate shared cost categories with the appropriate allocation bases

Premises:

Responses:

Office expense

Square footage of floor space

Utilities expense

Number of employees in department

Payroll processing costs

Sales in department

Cleaning costs

Time spent/used in department

Rent

Number of items processed.

Advertising

Not an allocated cost

Depreciation on departmental equipment

Data processing costs

Premises:

Office expense

Utilities expense

Payroll processing costs

Cleaning costs

Rent

Advertising

Depreciation on departmental equipment

Data processing costs

Responses:

Square footage of floor space

Number of employees in department

Sales in department

Time spent/used in department

Number of items processed.

Not an allocated cost

Correct Answer:

Premises:

Responses:

Office expense

Utilities expense

Payroll processing costs

Cleaning costs

Rent

Advertising

Depreciation on departmental equipment

Data processing costs