Staff Company Allocates Common Building Department Costs to Producing Departments

question 2

Multiple Choice

Staff Company allocates common Building Department costs to producing departments (P1 and P2) based on space occupied, and it allocates common Personnel Department costs based on the number of employees. Space occupancy and employee data are as follows: Building
Personnel
Dept. P1
Dept. P2
Space occupied
2,000 m.
10,000 m.
120,000 m.
70,000 m.
Employees
6
10
80
50
If Staff Company uses the sequential allocation method and the support department with the highest percentage of interdepartmental services is allocated first, the ratio representing the portion of Personnel Department costs allocated to Department P2 is

• A) 50/146.
• B) 90/140.
• C) 50/140.
• D) 50/130.

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Definitions:

Cross-sectional Study

An investigative approach that examines information from a whole population or a significant segment of it at one particular moment.

Longitudinal Study

A research method that involves observing the same subjects over a long period, often to detect changes or developments in the studied phenomena.

Long-term Memory

A type of memory capable of storing information for a prolonged period, ranging from days to a lifetime.

Short-term Memory

A thinking apparatus of limited scope, aimed at briefly sustaining information pending processing.