Option C is incorrect when allocating service department costs to operating departments.
<u>Explanation:
</u>
Typically, fixed costs are not assigned to working departments; however, they have to be absorbed by the service. This statement is incorrect in the service dept. Cost to Operating dept.
The reciprocal method assigns the cost of services to operating departments and other departments. The reciprocal costs are identified and the costs are assigned to each other and to services offered by each service department.
For example, if Service Department A requires certain services of Service Department B, the cost allocation system would not include these services. Since these services are not delegated to other departments, some auditors assume that the direct approach is not right.
Answer:
they buy the product and the producers get paid.
Explanation:
that's it hope it helps
Answer:
2.43 %
Explanation :
Real Interest rate = (1 + nominal rate) / (1 + inflation rate) - 1
therefore,
Real Interest rate = 1.052 / 1.027 - 1
= 2.43 %
the approximate real rate of interest is 2.43 %
Answer:
c. Deducted from the book balance of cash
Explanation:
A debit memorandum for printing check is the amount paid by the company for the printing of checks. This is a deduction from the bank balance in the bank statement.
Hence on the bank reconciliation, in other to capture transactions already captured in the bank statement but unrecorded in the books such as an unrecorded debit memorandum for printing checks, deducted from the book balance of cash.