Ex 24-4 Activity bases for service department charges

For each of the following service departments, select the activity base listed that is most appropriate for charging service expenses to responsible units.

Service Department         | Activity base
a. Conferences                 | 1. Number of conference attendees
b. Telecommunications    | 2. Number of computers
c. Accounts Receivable    | 3. Number of employees trained
d. Payroll Accounting      | 4. Number of telephone lines
e. Employee Travel          | 5. Number of purchase requisitions
f. Central Purchasing       | 6. Number of sales invoices
g. Training                       | 7. Number of payroll checks
h. Computer Support       | 8. Number of travel claims


Answer:
a. 1     e. 8
b. 4     f. 5
c. 6     g. 3
d. 7     h. 2