Which of the following is expensed under the principle of systematic and rational allocation a. salespeople's monthly salariesb. insurance premiumsc. transportation to customersd. electricity to light office building

Which of the following is expensed under the principle of systematic and rational allocation a. salespeople's monthly salariesb. insurance premiumsc. transportation to customersd. electricity to light office building

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 12MC: Which of the following principles matches expenses with associated revenues in the period in which...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Which of the following is expensed under the principle of systematic and rational allocation

a. salespeople's monthly salaries
b. insurance premiums
c. transportation to customers
d. electricity to light office building

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