Canfield Technical School Allocates Administrative Costs to Its Respective Departments

question 48

Multiple Choice

Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled,while maintenance and utilities are allocated per square feet of the classrooms.Based on the information below,what is the total amount of administrative cost to the Accounting Department (rounded to the nearest dollar) if administrative costs for the school were $50,000,maintenance fees were $12,000,and utilities were $6,000?

• A)$8,929.
• B)$17,000.
• C)$18,500.
• D)$22,667.
• E)$11,111.

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Definitions:

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows equal to zero.

Payback Period

Payback period is the duration required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Salvage Value

The determined residual amount of an asset at the cessation of its utility.