Use the Following Information for the Next 4 Questions

question 33

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 cafeteria is

• A) Cafeteria = $35,000
• B) Cafeteria = $35,000 + (0.15 × computer cost)
• C) Cafeteria = $35,000 + (0.10 × computer cost)
• D) Cafeteria = $35,000 + 0.10 × ($55,000 + 0.10 × computer costs)

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Definitions:

Inner-City Joblessness

High rates of unemployment among residents of densely populated, urban neighborhoods, typically resulting from a combination of economic, social, and educational disadvantages.

Microfinance

A type of banking service provided to unemployed or low-income individuals or groups who have no other access to financial services.

Financial Services

Economic services provided by the finance industry, including banks, insurance companies, investment funds, and more.

Traditional Banking

Banking services provided by physical bank branches, including deposit taking, lending, and other financial services.