Basis For Apportionment of Expenses - SS3 Accounting Past Questions and Answers - page 1
What is the basis for the apportionment of expenses?
The method used to allocate or distribute shared expenses among different departments or cost centres in a business
The amount of revenue generated by each department
The number of customers served by each department
The level of education of each department's employees
What is the most common basis for apportionment of expenses?
Usage or consumption of resources
Number of employees in each department
Revenue generated by each department
Education level of each department's employees
What is the purpose of apportioning expenses?
To ensure that each department or cost centre is charged only for the expenses that are directly related to its operations
To make the accounting process more complicated
To reduce the amount of paperwork
To make the financial statements more confusing
What other factors can be used as a basis for apportionment of expenses?
The number of machines or equipment used by each department
The level of education of each department's employees
The number of customers served by each department
The colour of each department's logo
Why is it important to use an appropriate basis for apportionment of expenses?
To ensure that each department or cost centre is charged only for the expenses that are directly related to its operations
To make the accounting process more complicated
To reduce the amount of paperwork
To make the financial statements more confusing
What is the purpose of allocating expenses among different departments or cost centres in a business?
The purpose of allocating expenses among different departments or cost centres in a business is to ensure that each department or cost centre is charged only for the expenses that are directly related to its operations.
What are some factors that can be used as a basis for apportionment of expenses other than usage or consumption of resources?
Other factors that can be used as a basis for apportionment of expenses include the number of employees in each department, the area or square footage of each department, the number of machines or equipment used by each department, the time spent by each department on a particular project or task, or the revenue generated by each department.