Quinlan, Inc

question 21

Multiple Choice

Quinlan, Inc. has two support departments (Maintenance and Personnel) and two operating departments (Tables and Chairs) . The Maintenance department provides more services to the Personnel department than the Personnel department provides to Maintenance. Once the support department costs have been allocated to the operating departments, each operating department allocates its total costs to units produced. Assume the direct method is used. The proportion of Personnel's costs allocated to the Table department is:

• A) 1/2
• B) 4/7
• C) 7/15
• D) 1/3

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Definitions:

Managerial Advice

Guidance or recommendations provided by someone in a supervisory role, intended to improve an individual's or team's performance and decision-making.

Span of Control

The number of subordinates that a manager or supervisor can directly control or oversee effectively.

Management Theorists

Scholars and practitioners who develop theories on how organizations can effectively be managed and operated.