Advertising totaled $20,000; $1,000 was indirect. What would be the best choice to use to allocate the indirect cost?
A) Allocate the indirect expense based on square feet.
B) Allocate the indirect expense based on gross sales.
C) Charge indirect expense to administrative expense.
D) Allocate the indirect expense based on goods shipped.
Correct Answer:
Verified
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A) indirect expenses.
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C)
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