Rent is apportioned each department on the basis of

Assessment: WAEC SSCE - Financial Accounting - 2009 (Objective) Subject: Financial Accounting

Question 1 Report

Rent is apportioned each department on the basis of
Answer Details
Rent can be apportioned to different departments in a business based on different methods. However, the most common method used to apportion rent is based on the area or space occupied by each department. In this method, the total rent payable is divided by the total area of the building and then multiplied by the area occupied by each department. This gives the amount of rent that each department should be charged based on the space they occupy. This method ensures that each department pays a fair share of the rent based on the amount of space they use, and it is a simple and objective way to apportion rent.

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