Chambers, Inc

question 74

Multiple Choice

Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B) . The following data are given: If the direct method is used, how much computer cost would be allocated to the utilities department?

• A) $0
• B) $18,750
• C) $11,250
• D) $ 8,250

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Definitions:

Exchanges

Transactions where goods, services, or assets are traded between two parties without the primary use of money, also can refer to platforms that facilitate these trades.

Extraordinary Repairs

Significant repairs that extend the useful life of an asset far beyond the current accounting period, often involving major overhaul or reconstruction.

Useful Life

The estimated period of time an asset is expected to be functional and economically usable by an organization.

Capital Expenditures

Capital employed by a corporation to purchase or enhance tangible assets like real estate, manufacturing facilities, or machinery.