Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 1

Weyerhaeuser developed a system that assigns service department expenses to user divisions on the basis of actual services consumed by the division. Here are a number of Weyerhaeuser's activities in its central Financial Services Department:
• Payroll
• Accounts payable
• Accounts receivable
• Database administration-report preparation For each activity, identify an activity base that could be used to charge user divisions for service.