Use This Information for ABC Corporation to Answer the Questions

question 143

Multiple Choice

Use this information for ABC Corporation to answer the questions that follow.
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ABC Corporation has three service departments with the following costs and activity base:
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ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows:
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-What is the service department charge rate for the Accounting Department?

• A) $714
• B) $250
• C) $625
• D) $0.004

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Definitions:

Dividends

Payments made by a corporation to its shareholder members from its profits or reserve.

Market Price

Market price is the current value at which an asset or service can be bought or sold in the marketplace.

Debt-To-Equity Ratio

An indicator measuring the balance between financing a company's assets through shareholders' equity and debt.

Balance Sheet

The balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.