ABC Corporation Has Three Service Departments with the Following Costs

question 80

Multiple Choice

ABC Corporation has three service departments with the following costs and activity base: What is the service department charge rate for the Personnel Department?

• A) $2,758
• B) $3,200
• C) $3,077
• D) $1,000

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Definitions:

Revenues

Revenues are the total income earned by a company from its normal business activities, before any expenses are deducted.

Expenses

Costs incurred in the process of earning revenue, typically categorized as certain costs necessary to operate a business.

Assets Increase

A rise in the company's resources, resulting from transactions that bring future economic benefits to the entity.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.