If Common Computer Service Costs Are Allocated Using Computer Time

question 55

Multiple Choice

If common computer service costs are allocated using computer time as the allocation basis,what is the computer cost allocated to Division B?

• A)$136,190
• B)$137,647
• C)$144,444
• D)$173,333

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Definitions:

Perfectly Elastic

Perfectly elastic refers to a situation where the quantity demanded or supplied responds infinitely to changes in price.

Perfectly Inelastic

A situation in which the quantity demanded or supplied of a good does not change in response to a change in price.

Elastic

Elastic refers to a situation where the demand for a product or service significantly changes in response to price changes.

Inelastic

Describes a situation where the quantity demanded or supplied of a good or service is relatively unresponsive to changes in its price.