Using the Sequential Method, Pone Hill Company Allocates Janitorial Department

question 21

Multiple Choice

Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs.It has the following information about its two service departments and two production departments, Cutting and Assembly: The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is

• A)75%
• B)22.2%
• C)25%
• D)18.2%

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Definitions:

Economic Policy

A set of strategies chosen by a government to influence its economy, including fiscal policy (use of government spending and taxation) and monetary policy (controlling the nation's money supply and interest rates).

Time Lags

The delays between the initiation and the effect of an economic policy or other financial actions, impacting their effectiveness.

Passive Approach

An investment strategy that minimizes buying and selling actions, favoring long-term holding and typically indexed investments.

Policy Lags

The delay between the time a policy is enacted and the time it has an impact on the economy.