Barrington Box Enterprises Has Two Divisions, Large and Small, That

question 138

Multiple Choice

Barrington Box Enterprises has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $4,500,000. You have been provided with the following information for the upcoming year:
$$\begin{array} { | l | r | c | } \hline & { \text { Calls } } &{ \text { Time on Network (hours) } } \\\hline \text { Large } & 100,000 &120,000 \\\hline \text { Small } & 80,000 & 320,000 \\\hline\end{array}$$
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What is the allocation rate for the upcoming year, assuming Barrington Box uses the single-rate method and allocates common costs based on the number of calls?

• A) $10.00.
• B) $15.00.
• C) $20.00.
• D) $25.00.

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Definitions:

Skills Approach

A perspective on leadership that emphasizes the importance of developing certain skills and abilities, such as technical, human, and conceptual skills, for effective leadership.

Leader Behaviors

Actions taken by leaders in directing, motivating, and managing team members, which can significantly influence the team's success and organizational outcomes.

Discretely

Acting in a way that is purposely unobtrusive or cautious to avoid drawing attention or revealing private information.

Situational Challenge

A circumstance or obstacle that arises from external conditions, requiring adaptation and problem-solving.