Complete/Correct Question:
A proprietorship has three important advantages:______________.
(1) It is easily and inexpensively formed,
(2) it is subject to government regulations, and
(3) it is subject to lower income taxes than are corporations
Answer:
True
Explanation:
A proprietorship is an unincorporated business owned by an individual. Starting a proprietorship business is easy to start and has it most important advantage stated above in the question. it also has its limitations and as such some sole proprietorship businesses have converted to corporations when the business limitations are too overwhelming.
The limitations of sole proprietorship includes unlimited liability for the business or debts it might incure, the life of the business is a function of the life span of the owner, inability to secure huge capital from banks,etc.
A sole proprietorship is therefore used for small businesses.
Cheers.
Answer:
B. The process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset.
Explanation:
A piece of equipment will cost a lot of money, but should also last for a long time. Accounting depreciation breaks the cost of the equipment (or any asset) into predictable, mathematically determined amounts so that the costs can be "spread out" over the many years that you use it rather than just when you first purchase it.
As organizations that use work order costing maintain track of materials and other resources for each project item, this method often necessitates more thorough record keeping than a process costing. However, in systems that use process costing, each production or process department has its own inventory account and aggregates expenses.
<h3>How are the 2 systems similar?</h3>
- Both approaches serve the same fundamental objectives: to provide a framework for calculating unit product cost and to assign material, labor, and overhead costs to items.
- The same fundamental manufacturing accounting principles are used by both systems, including production overhead, raw materials, work in progress, and finished goods.
- In both systems, the cost flow through the manufacturing accounts is essentially the same.
<h3>What are the differences between the two?</h3>
There are two reasons why work order costing and process costing differ from one another. The first is that a process costing system has a flow of units that is essentially continuous, and the second is that these units are interchangeable. Since each order is just one of many that are filled from a continuous flow of almost identical units from the manufacturing line, it makes no sense to try to identify materials, labor, and overhead costs with a specific order from a customer (as we do with job order costing). Under process costing, costs are accumulated by the department as opposed to orders, and they are then uniformly distributed to all units that go through the department over the course of a time period.
The fact that process costing does not employ the job cost sheet since its emphasis is on departments is another distinction between the two costing methodologies. For each department that works on items, a production report is created as opposed to a task cost sheet. The production report fulfills a number of purposes. It gives a summary of how many units pass through a department in a given time frame and computes unit costs. Additionally, it displays the expenses incurred by the department and the decision made regarding such expenses. In a process costing system, the department production report is a crucial document.
Therefore, above are all the differences and similarities between the 2 systems.
For more information on the Costing system, refer to the given link:
brainly.com/question/24516871
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