Julia Company Allocates Its Indirect Advertising Expenses Based on Each

question 42

Multiple Choice

Julia Company allocates its indirect advertising expenses based on each department's gross sales. If the men's apparel department has gross sales of $200,000 out of a total of $1,800,000 in gross sales, what percentage would Julia use to allocate its indirect advertising expenses?

• A) 1/9
• B) 1/10
• C) 1/11
• D) 8/9

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Definitions:

Service Economy

An economic phase in which the service sector generates more wealth than the manufacturing sector of the economy, characterized by a high volume of services relative to goods.

Modified Capitalism

An economic system that incorporates elements of capitalism with various degrees of government intervention or social welfare policies.