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Soru

Zorluk: Çok zorAllocation and Apportionment of Expenses among Departments

Match each of the following departmental overhead expenses with its standard equitable basis of apportionment in departmental accounting:

  • Factory power and electricity for heavy machineryKilowatt-hours (kWh) or horse-power rating of machines
  • Staff canteen and welfare expensesNumber of employees / staff count per department
  • Rent, rates, and building insuranceFloor space occupied by each department
  • Sales promotion and nationwide advertisingGross sales or net turnover of each department

Cevap

Factory power matches with Kilowatt-hours/horse-power rating; Staff canteen expenses match with Number of employees; Rent, rates, and building insurance match with Floor space occupied; Sales promotion matches with Gross sales/net turnover.
Each indirect expense in departmental accounting must be apportioned using a logical, equitable basis that reflects benefit received or cost driven. Factory power relates to machine capacity (Kilowatt-hours/horse-power rating), staff canteen relates to headcount (Number of employees), rent and rates relate to physical location (Floor space occupied), and sales promotion relates to commercial activity (Gross sales or net turnover).

Adım Adım Çözüm

1
Identify the cause or driving factor for factory power usage.
Machine capacity/consumption (Kilowatt-hours or horse-power rating) is the equitable basis.
Heavy machinery power consumption is proportional to machine operational capacity rather than floor area or employee count.
2
Determine the appropriate basis for employee welfare and staff canteen expenses.
Number of employees / staff count per department is the equitable basis.
Canteen services are consumed by staff, so costs vary directly with departmental headcount.
3
Identify the property-related driver for rent, rates, and building insurance.
Floor space occupied by each department is the equitable basis.
Building expenses are distributed based on the proportion of physical area utilized by each department.
4
Select the revenue-generating basis for sales promotion and advertising.
Gross sales or net turnover of each department is the equitable basis.
Advertising expenses are intended to boost sales across selling departments, making departmental sales turnover the standard metric for apportionment.

Anahtar Kavram

Equitable Bases for Departmental Expense Apportionment
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Konular

Allocation and Apportionment of Expenses among Departments

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