Basis For Apportionment of Expenses - SS3 Accounting Past Questions and Answers - page 1
1
What is the basis for the apportionment of expenses?
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A
The method used to allocate or distribute shared expenses among different departments or cost centres in a business
B
The amount of revenue generated by each department
C
The number of customers served by each department
D
The level of education of each department's employees
2
What is the most common basis for apportionment of expenses?
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A
Usage or consumption of resources
B
Number of employees in each department
C
Revenue generated by each department
D
Education level of each department's employees
3
What is the purpose of apportioning expenses?
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A
To ensure that each department or cost centre is charged only for the expenses that are directly related to its operations
B
To make the accounting process more complicated
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C
To reduce the amount of paperwork
D
To make the financial statements more confusing
4
What other factors can be used as a basis for apportionment of expenses?
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A
The number of machines or equipment used by each department
B
The level of education of each department's employees
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C
The number of customers served by each department
D
The colour of each department's logo
5
Why is it important to use an appropriate basis for apportionment of expenses?
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A
To ensure that each department or cost centre is charged only for the expenses that are directly related to its operations
B
To make the accounting process more complicated
C
To reduce the amount of paperwork
D
To make the financial statements more confusing
6
What is the purpose of allocating expenses among different departments or cost centres in a business?
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7
What are some factors that can be used as a basis for apportionment of expenses other than usage or consumption of resources?
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