The Managers of HRY Corporation Are Analyzing Some of Their

question 1

Multiple Choice

The managers of HRY Corporation are analyzing some of their corporate costs to determine the costs of each department's use of administrative services. The accountant wants to allocate the costs of payroll processing using an activity-based costing system. The most appropriate cost driver for the payroll processing cost pool is the

• A) Number of pay periods per month
• B) Number of employees
• C) Average hourly wage for all employees
• D) Maximum number of deductions from an individual employee's paycheck

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Definitions:

Common Stock Account

An equity account on a company's balance sheet representing the amount of money that has been invested directly in the company by its shareholders in exchange for common stock.

$5 Par Value

A nominal or face value assigned to a share of stock, in this case, set at five dollars, used in certain financial calculations and legal paperwork.

$18 Per Share

A specific price value assigned to individual shares of stock, indicating the cost or value of a single share at a particular moment.

Treasury Stock

Shares that were once a part of the outstanding shares and have been repurchased by the company.