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

question 11

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 total communication network costs allocated to the Small Box Division assuming the company uses dual-rates to allocate common costs?

• A)$2,520,000
• B)$1,800,000
• C)$1,320,000
• D)$1,200,000

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Definitions:

Permanent Withdrawal

The act of leaving a position, role, or organization with no intention of returning, typically referring to retirement or resignation.

Full-time Work

Employment in which an individual works a minimum number of hours defined as such by their employer, typically involving a commitment of 35-40 hours per week.

Phased Retirement

An arrangement that allows employees to reduce their hours and/or responsibilities in order to ease into retirement.

Complete Cessation

A term referring to the total ending or discontinuation of a behavior or process.