Use This Information to Answer the Following Questions

question 54

Multiple Choice

Use this information to answer the following Questions
Rave Reviews Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly) . The number of employees in each department follows.

-Rave Reviews uses the direct method of cost allocation and allocates cost on the basis of employees. If Human Resources cost amounts to $1,800,000, how much of the department's cost would be allocated to Machining?

• A) $600,000.
• B) $720,000.
• C) $900,000.
• D) $1,200,000.
• E) None of the answers is correct.

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Definitions:

Customer Value

The perception of what a product or service is worth to a customer versus the possible alternatives.

Supply Chain Surplus

The total value created by the supply chain, calculated as the difference between the value of the final product to the end consumer and the total costs incurred in supplying the product.

Supply Chain Cost

Encompasses all expenses related to producing and delivering products to the final customer, including production, storage, and transportation.

Supply Chain Profit

The total revenue generated from a product minus the costs incurred from raw materials to final delivery, across all participants in the supply chain.