The Cost Accountant Determined $2,700,000 of the Communication Network's Costs

question 15

Multiple Choice

The cost accountant determined $2,700,000 of the communication network's costs were fixed and should be allocated based on the number of calls.The remaining costs should be allocated based on the time on the network.What is the total communication network costs allocated to the Large Box Division assuming the company uses dual-rates to allocate common costs?

• A)$2,700,000
• B)$2,520,000
• C)$1,980,000
• D)$1,500,000

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Definitions:

Minimum Price

A stipulated or regulated lowest price that can be charged for goods or services.

Sherman Act

An essential United States antitrust regulation that forbids monopolistic actions and fosters a competitive environment.

Price-fixing

Price-fixing is an illegal agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.

State Law

The body of law that is created by and specific to the individual states in a country, as opposed to federal law which is applicable across the entire country.