Use the Following Information for the Next 2 Questions

question 1

Multiple Choice

Use the following information for the next 2 questions.
Cervantes Industries provides an in-house cafeteria for production and administrative employees. This service costs $25,000 per month, plus $3 per meal served. The company has 800 production employees and 400 administrative employees. During the past month 5,500 meals were served to production employees and 2,000 to administrative.
-The amount of cost allocated to the administrative department using actual meals served as the basis is

• A) $16,675
• B) $12,667
• C) $14,325
• D) $18,500

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Definitions:

Executive Compensation

The financial payments and other benefits given to high-level management in a corporation.

Pay Secrecy

Policies or practices that prohibit employees from discussing or disclosing their own salaries or wages with their colleagues, often contested for hindering wage transparency.

Internal Exchange

The process and activities involved in the trading of goods, services, or information within the confines of an organization, rather than with external parties.

Underrewarded

The perception or reality of receiving less compensation or recognition than what one's efforts or contributions to the organization warrant.