Marks Corporation Has Two Operating Departments,Drilling and Grinding,and an Office

question 56

Multiple Choice

Marks Corporation has two operating departments,Drilling and Grinding,and an office.The three categories of office expenses are allocated to the two departments using different allocation bases.The following information is available for the current period: The amount of the total office expenses that should be allocated to Grinding for the current period is:

• A)$35,750.
• B)$45,000.
• C)$54,250.
• D)$90,000.
• E)$600,000.

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Definitions:

Costs

The monetary value of resources consumed or spent to achieve a particular objective.

Benefits

Advantages or positive outcomes that result from a particular action or policy.

Free Rider Problem

A situation where individuals consume a public good without contributing to its cost, benefitting from others' contributions.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability to others.