Use the Following Information for the Next 4 Questions

question 114

Multiple Choice

Use the following information for the next 4 questions. The managers of Conch, Inc. want to determine the most accurate allocation of support department costs to operating departments. To make this allocation, the accounting department has collected the following data:
-If the reciprocal method is used, the equation representing the total cost of the computer department is

• A) Computer costs = $55,000 + (0.15 × cafeteria cost)
• B) Computer costs = $55,000 + (0.10 × cafeteria cost)
• C) Computer costs = $55,000
• D) Computer costs = $55,000 + 0.10 × ($55,000 + 0.10 × computer cost)

---

Definitions:

Elasticity

A measure of how much buyers and sellers respond to changes in market conditions, particularly price changes.

Energy

The quantitative property that must be transferred to an object in order to perform work on, or to heat, the object, existing in various forms such as kinetic, potential, thermal, and others.

Doomsday Projections

Predictions or forecasts about catastrophic future events leading to severe disruption or destruction.

Technology

The application of scientific knowledge for practical purposes, especially in industry.