Question

fire insurance and repairs on asset should be divided among the different department on the basis of consignmentJoint
options are:
a) sales ratio
b) light points
c) H.P.of machines
d) value of each set​

Answer 1

Answer:

c) H.P.of machines

Answer 2

Fire insurance and repairs on asset should be divided among the different department on the basis of "Value of each Assets".

• The term fire insurance refers to a type of property(i.e. asset related) insurance that covers damage and losses caused by fire.
• repairs on assets is one type expenses which is usually related to asset maintenance expenditure.

Both, fire insurance and repairs on asset is related to particular asset.

So, whatever cost incurred for insurance and repair & maintenance distributed on the basis of asset value.

(Option d)