At the Spring Valley Company Company, the Cost of the Personnel

question 34

Multiple Choice

At the Spring Valley Company Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $282,000.

If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)

• A) $43,759
• B) $6,845
• C) $109,980
• D) $47,913

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Definitions:

Self-Control

Internal control that occurs through self-management and self-discipline in fulfilling work and personal responsibilities.

Performance Goals

Targets or objectives set to measure and guide the productivity or output of an individual, group, or organization.

Market Control

The influence of market competition on the behavior of organizations and their members.

Market Competition

The rivalry among companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.