Using the Reciprocal Services Method, Which of the Following Equations

question 52

Multiple Choice

Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $350,000 of direct costs but also 30% of the Maintenance Department (M) cost and the Maintenance Department that includes not only $50,000 of direct costs but also 50% of the Janitorial Department?

• A)J = $350,000 + (0.30 ÷ M) and M = $50,000 + (0.50 ÷ J)
• B)J = ($350,000 × 0.30) + M and M = ($50,000 × 0.50) + J
• C)J = $350,000 - (0.30 × M) and M = $50,000 - (0.50 × J)
• D)J = $350,000 + (0.30 × M) and M = $50,000 + (0.50 × J)

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Definitions:

Exponential Distribution

A probability distribution that describes the time between events in a process where occurrences happen at a constant rate.

Proportion

A portion, segment, or fraction when evaluated in relation to its entirety.

Chi-squared Curve

Describes the distribution of a chi-squared statistic, used in hypothesis testing to determine how well observed data fit with expected data.

Degrees of Freedom

The number of independent values or quantities that can vary in the analysis without violating any constraints.