In departmental accounts, rent is appointed on the basis of

In departmental accounts, rent is appointed on the basis of floor area occupied. This means that the total rent paid by a company is divided among the different departments based on the amount of space each department occupies in the building. This method is considered to be a fair and objective way of allocating rent expenses because it takes into account the actual amount of space used by each department. Other methods, such as allocating rent based on the number of personnel in each department or volume of sales, may not accurately reflect the amount of space used and can lead to unfair distributions of rent expenses.