Solve the Problem. -The President of a Certain University Makes Three Times as Three

question 6

Multiple Choice

Solve the problem.
-The president of a certain university makes three times as much money as one of the department heads. If the total of their salaries is $190,000, find each worker's salary.

• A)president's salary = $47,500; department head's salary = $142,500
• B)president's salary = $142,500; department head's salary = $47,500
• C)president's salary = $95,000; department head's salary = $47,500
• D)president's salary = $14,250; department head's salary = $4750

Distinguish between the allocation bases for different types of indirect expenses.

Recognize direct expenses related to a specific department.

Interpret the concepts of gross profit, direct, and indirect expenses in departmental accounting.

Learn the methods for allocating advertising and building depreciation expenses.

---

Definitions:

Interest Rate

An interest rate is the percentage charged on the total amount of borrowed money, or paid on deposited funds, over a specific period of time.

Cash Flows

The aggregate movement of liquid funds into and exiting from a corporation.

Cost of Money

Refers to the interest rate or the opportunity cost of borrowing or using money.

Car Dealer

A business that sells new or used cars at the retail level, typically based on a dealership contract with an automaker or sales subsidiary.