Retirement Planning Is a Consulting Firm with Clients Across the Nation.Within

question 94

Multiple Choice

Retirement Planning is a consulting firm with clients across the nation.Within the company is a travel group that arranges flights and hotel accommodations for its 250 consultants.The overhead cost of operating the travel group amounts to approximately $204,000 annually.Recently the company conducted an ABM study that has determined the following:
-Each consultant completed approximately 15 business trips per year.
-On average, 17 trips are scheduled, with 2 trips cancelled and rescheduled.
-Benchmarking with a Retirement Planning's client indicates that the client incurs a cost of $60 per scheduled trip to book travel.
How much overhead cost should be allocated to each completed trip?

• A)$54.40
• B)$48.00
• C)$60.00
• D)None of these answer choices are correct.

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Definitions:

Teleconferencing

The use of telecommunications technology to facilitate meetings or discussions among participants in different locations.

Unique Attitude

A distinctive perspective or way of thinking that sets an individual apart from others.

Cultural Competency

An appreciation for cultural differences that affect communication and the ability to adjust one’s communication style to ensure that efforts to send and receive messages across cultural boundaries are successful.

Market Share

The portion of a market controlled by a particular company or product.