Management Estimates That It Costs $500 to Analyze and Close

question 6

Multiple Choice

Management estimates that it costs $500 to analyze and close a commercial loan.This amount has been included in the $250,000 of indirect costs.How much of the $250,000 indirect costs should be allocated to the Consumer Department?

• A)$50,000.
• B)$90,000.
• C)$160,000.
• D)$200,000.

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Definitions:

Cash Inflow

Money entering a business from various sources such as operations, financing activities, and investing activities, contributing to the overall cash balance.

Operating Activities

Operating Activities involve the primary activities a company engages in to generate income, including production, sales, and delivery of its product or service.

Investing Activities

Transactions related to buying or selling long-term assets and investments other than cash equivalents.

Financing Activities

These involve transactions related to raising capital and repaying investors, such as issuing shares and obtaining loans, covered in the cash flow statement.