Suggest a reasonable basis for allocating thefollowing indirect expenses to departments: advertising

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A:

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A: Expenditure cycle: Expenditure cycle refers to the repetitive business activities that deals with…

Q: the examples of

A: Answer

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Q: uggestions for dispersing indirect expenditures to departments: cleaning service

A: The Answer

Q: responsibility centers have accountability for revenues

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Q: In a responsibility accounting system, should the recording of revenue and costs begin at the…

A: Responsibility center: A department or unit of a corporation where the management assigns the…

Q: Name the units of service on which cost-based payers may pay providers

A: Payers- is a company that  pays for or reimburses for medical services availed. For example, the…

Q: Distinguish between direct and indirect expenses and identify bases for allocating indirect expenses…

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Q: Allocate the support departments’ costs to the operating departments using the direct method

A: Direct allocation method is one of the method used to reallocate service departments' overheads to…

Q: 1. Compare and explain differences in the support-department costs allocated to eachproduction…

A: To compare and explain the differences in the support-department costs allocated to each production…

Q: Determining the basis used to allocate support department costs follows which guideline? O Profit…

A: A department cost refers to the total expenditures or expenses associated with a specific functional…

Q: Which of the following steps in the expenditure cycle would not appear as event entities in an REA…

A: Which of the following steps in the expenditure cycle would not appear as event entities in an REA…

Q: relevant (differential) revenues and relevant (differential) costs

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A: Generally speaking, supporting departments are those that give services to the departments that they…

Q: Explain why support costs are allocated to departments.

A: Support Cost:-These are those costs that are not directly attributable to the manufacturing of the…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.