Tilley Professional Services is composed of two separate divisions: (1) tax services as provided by the tax
Question:
Salary of the partner in charge of the audit department
Salary of the managing partner of the firm
Cost of office supplies such as paper, pencils, erasers, etc.
Depreciation of computers used in the tax department
License fees of the firm
Professional labor for a tax engagement
Secretarial labor supporting both departments
Professional labor for an audit engagement
Depreciation of computers used in the audit department
Salary of the partner in charge of the tax department
Travel expenditures for an audit engagement
Required
a. Identify each cost as being a direct or indirect cost assuming the cost objects are the individual engagements (audit engagements or tax engagements).
b. Identify each cost as being a direct or indirect cost assuming the cost objects are the two departments.
c. Identify each cost as being a direct or indirect cost assuming the cost object is Tilley Professional Services as a whole.
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
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