Luxurious Department Store Incurred $6,000 of Indirect Advertising Costs for Its

question 79

Multiple Choice

Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data has been collected for 2018 for its three departments: $\begin{array}{lrrr}&\text { Sportswear } &\text { Lingerie} &\text { Appliance: }\\\text { Sales } & \$ 160,000 & \$ 120,000 & \$ 120,000 \\\text { Direct adverti sing costs } & \$ 7,000 & \$ 12,000 & \$ 3,000 \\\text { Newspaper ad space } & 62 \% & 20 \% & 18 \%\end{array}$ How much of the indirect advertising costs will be allocated to the Lingerie Department if direct advertising costs is the activity driver? (Round to the nearest dollar if necessary)

• A)$3,000
• B)$3,273
• C)$6,000
• D)$12,000

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Definitions:

Chain of Command

The hierarchy of authority in an organization that determines how instructions are passed down and accountability is enforced.

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Established pathways for communication within an organization, typically outlined in its hierarchy or organizational structure.

Grapevines

Informal communication channels within organizations where information, rumors, and gossip are spread unofficially among employees.

Incorrect Information

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