Table 10-4 The Following Information Pertains to the Bank of Kingston

question 194

Multiple Choice

Table 10-4
The following information pertains to the Bank of Kingston.

-Refer to the Table 10-4.If the Bank of Canada requires a reserve ratio of 4 percent,how much in excess reserves does the Bank of Kingston now hold?

• A)$1200
• B)$2400
• C)$2880
• D)$3000

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Definitions:

Overhead Cost

Expenses related to the operation of a business that cannot be directly traced to a specific product or service, such as rent, utilities, and administrative costs.

First Stage Allocations

The initial process of distributing overhead costs to various cost pools or departments in activity-based costing.

Activity Rate

The cost driver rate in activity-based costing used to assign costs to cost objects, based on each cost object's usage or creation of costs.

Processing Activity

Refers to operations or work performed in a systematic sequence to alter materials or information.