Microsoft
MB-310 · Question #7
A company plans to create a new allocation rule for electric utilities expenses. The allocation rule must meet the following requirements: - Distribute overhead utility expense to each department…
The correct answer is D. Basis. This variable method is used when the allocation depends on the actual ledger balance, based on filter criteria. For example, advertising expenses can be allocated based on each department's sales in proportion to the total departmental sales…
Implement financial management
Question
A company plans to create a new allocation rule for electric utilities expenses. The allocation rule must meet the following requirements: - Distribute overhead utility expense to each department. - Define how and in what proportion the source amounts must be distributed on various destination lines. You need to configure the allocation rule. Which allocation method should you use?
Options
- ADistribute the source document amount equally
- BFixed weight
- CEqually
- DBasis
How the community answered
(32 responses)- A9% (3)
- B3% (1)
- C16% (5)
- D72% (23)
Explanation
This variable method is used when the allocation depends on the actual ledger balance, based on filter criteria. For example, advertising expenses can be allocated based on each department's sales in proportion to the total departmental sales. https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general- ledger/ledger-allocation-rules
Topics
#allocation rules#overhead distribution#Basis allocation method#expense distribution
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