Which of the following is an application of the principle of systematic and rational allocation?
A) Sales commissions
B) Office salaries
C) Telephone expense
D) Depreciation expense

Question

Quizplus · Accepted Answer

Depreciation expense is an application of the principle of systematic and rational allocation because it involves allocating the cost of a long-lived asset over its useful life in a systematic and rational manner. This helps to accurately reflect the asset's value and expense in each accounting period. Sales commissions, office salaries, and telephone expense are not necessarily examples of systematic and rational allocation as they may be based on other factors such as performance or usage.

Which of the Following Is an Application of the Principle