Redrum Company Has Four Divisions and Allocates Central Costs to Each

question 85

Essay

Redrum Company has four divisions and allocates Central costs to each division based on one of three cost drivers as follows: $$\begin{array} { l l l l l } & \text { North } & \text { South } & \text { East } & \text { West } \\\text { Revenue } & \$ 16,250 & \$ 20,750 & \$ 14,500 & \$ 17,750 \\\text { Cost of goods sold } & 10,250 & 14,750 & 10,500 & 13,750 \\\text { Total assets } & 20,000 & 24,000 & 19,250 & 22,250\end{array}$$ Total central costs were $17,500.
Required:
Allocate the Central costs to the four divisions based on the following cost drivers:
a. revenue
b. cost of goods sold
c. total assets

Understand the mechanisms driving global wind patterns and their effects on climates and biomes.

Comprehend the cycle of water and its impact on different ecosystems.

Recognize the importance of unique ecological regions, such as estuaries and coral reefs, and their biodiversity.

Understand the factors that influence the distribution and characteristics of biomes.

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Definitions:

Cash

Money in the form of coins or banknotes, especially that of a country or a particular denomination.

Bonds Payable

Long-term liabilities representing borrowed money that the company is obligated to repay to bondholders, typically at fixed interest rates.

Issuance

The process of offering new securities for sale to investors, typically by a corporation or government.

Face Amount

The nominal value printed on the face of a financial instrument, such as a bond or insurance policy, representing the amount due at maturity.