It Has Been Determined That Administrative Costs of $6,300 Have

question 19

Multiple Choice

It has been determined that Administrative costs of $6,300 have been consumed on a percentage basis by the following departments: Using the direct method, how much of the administrative costs will be allocated to the Engineering department (rounded) ?

• A)$5,040
• B) $1,890
• C) $2,363
• D) $3,938

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Definitions:

Rate of Return

Outcomes in terms of profit or loss on an investment during a defined period, voiced as a percentage of the investment’s initial pricing.

Investor's Return

The upward or downward financial impact on an investment within a specific period, quantified as a percentage of the investment’s outset cost.

Expected to Be

A phrase indicating the anticipation or belief that something will occur or be the case in the future.

Market Rate of Return

The average rate of return expected by investors in a particular market, based on historical or anticipated investment performance.