Soprano Corporation Allocates Administrative Costs on the Basis of Staff

question 68

Multiple Choice

Soprano Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow.

If Soprano uses dual-cost accounting procedures and fixed administrative costs total $1,000,000, the amount of long-run cost to allocate to Department 1 would be:

• A) $400,000.
• B) $450,000.
• C) $500,000.
• D) $850,000.
• E) None of the answers is correct.

---

Definitions:

Cultural Intelligence

The ability to understand, respect, and effectively interact with people from diverse cultural backgrounds.

Ambiguous Gestures

Actions or signals that are unclear or have multiple interpretations, often causing confusion in communication.

Diversity Training

Programs designed to improve interpersonal dynamics by recognizing, respecting, and valuing differences among individuals in the workplace.

Stereotypes

Oversimplified and generalized beliefs about a particular group of people or class of objects, often leading to prejudiced attitudes or actions.