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bearhunter [10]
3 years ago
6

Which is NOT true of the various methods of allocating service department costs?

Business
1 answer:
alexandr1967 [171]3 years ago
4 0

Answer:

The statement which is NOT true of the various methods of allocating service department costs is:

b. The choice of method affects the optimal allocation of resources

Explanation:

The allocation method used by an organization does not affect whether the organization's resources are allocated optimally or not.  After all, what is at stake is not the allocation of resources, but the allocation of consumed resources.  An organization is free in making its choice of method.  The basis for choosing an allocation method is to ensure that costs are allocated optimally and not resources.

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The following makes notes receivable :

- Notes receivable are formal written contracts.

- Notes receivable have a stronger legal claim.

- Notes receivable are interest bearing.

<h3>What are Notes Receivable?</h3>

Notes receivable are a balance sheet item that records the value of promissory notes that a business is owed and should receive payment for. A written promissory note gives the holder, or bearer, the right to receive the amount outlined in the legal agreement. Promissory notes are a written promise to pay cash to another party on or before a specified future date.

If the note receivable is due within a year, then it is treated as a current asset on the balance sheet. If it is not due until a date that is more than one year in the future, then it is treated as a non-current asset on the balance sheet.

Often, a business will allow customers to convert their overdue accounts (the business’ accounts receivable) into notes receivable. By doing so, the debtor typically benefits by having more time to pay.

Learn more about Notes Receivable on:

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2 years ago
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FrozenT [24]

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