ABC Corporation Has Three Service Departments with the Following Costs

question 184

Multiple Choice

ABC Corporation has three service departments with the following costs and activity base: What will the income of the Super Division be after all service department allocations?

• A) $300,000
• B) $325,000
• C) $550,000
• D) $200,000

---

Definitions:

Algebraic Expression

A combination of numbers, variables, and operations that represents a specific value when evaluated.

Absolute Value

The distance of a number from zero on the number line, without considering its direction; it’s always non-negative.

Algebraic Expression

An expression composed of variables, numbers, and arithmetic operations.

Decreased

To become smaller or less in size, quantity, intensity, or degree.