James Walker DBA Walker Enterprises Has Been a Customer of the Bank

question 231

Multiple Choice

James Walker DBA Walker Enterprises has been a customer of the bank for one month. The company told the bank that it would regularly make deposits in excess of $10,000 because it operates several laundromats in the city. The bank performed a background check on the company before opening the account. For its first 30 days, the company made 12 large cash deposits. Can the bank exempt this company now? Why or why not?

• A) No. It is a not a corporation, but a sole proprietorship.
• B) No. It has not maintained an account at the bank for 12 months.
• C) No. It operates an ineligible business.
• D) Yes. The bank conducted due diligence on the customer to determine that it had legitimate large cash transactions.

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Definitions:

Departmental Overhead Rates

Specific rates used to allocate overhead costs to products or cost objects based on the expenses of different departments.

Allocation Base

A measure used to distribute costs among different departments, products, or activities, typically related to the amount of resources consumed.

Unit Product Costs

The complete expense incurred in the creation of a single unit of a product, encompassing materials, workforce, and indirect costs.

Indirect Labor

Labor costs associated with employees who do not directly work on a product, but whose services are necessary for the manufacturing process.