Parker's newly hired director of accounting services feels that the property taxes on the Cairo factory should be allocated to the fabricating,assembly,and finishing departments based upon the square footage they occupy.Of the following,which is not a valid reason to reject this recommendation?

Question

Quizplus · Accepted Answer

Allocating property taxes based on square footage does not violate Generally Accepted Accounting Principles (GAAP). GAAP does not specifically dictate how internal allocations like property taxes should be distributed among departments, as these are internal decisions and not external financial reporting issues.

Parker's Newly Hired Director of Accounting Services Feels That the Property