Advertising expense can be reasonably allocated to departments on the basis of sales.

Name: Advertising expense can be reasonably allocated to departments on the basis of sales.
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Question

Quizplus · Accepted Answer

Allocating advertising expense to departments based on sales is a common method of allocation as it assumes that departments with higher sales will benefit more from advertising efforts and should, therefore, bear a proportionally higher share of the cost.

Advertising Expense Can Be Reasonably Allocated to Departments on the Basis