Office salaries expense should be allocated on the basis of total sales in each department.

Name: Office salaries expense should be allocated on the basis of total sales in each department.
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Question

Quizplus · Accepted Answer

Office salaries expense is an indirect cost that should be allocated to departments based on a reasonable allocation base. Total sales is a common allocation base for indirect costs because it is a measure of the activity that drives the incurrence of the cost.

Office Salaries Expense Should Be Allocated on the Basis of Total