Organic Laboratories Allocates Research and Development Costs to Its Three

question 23

Multiple Choice

Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments:
Using revenue as an allocation base,the amount of costs allocated to the Illinois research facility is calculated to be:

• A)$17,000,000.
• B)$33,000,000.
• C)$14,000,000.
• D)$28,000,000.
• E)$21,000,000.

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Definitions:

Financial Managers

Executives who develop and implement the firm’s financial plan and determine the most appropriate sources and uses of funds.

Financial Plan

A comprehensive evaluation of an individual's or organization's current and future financial state by using currently known variables to predict future income, asset values, and withdrawal plans.

Funds

Financial resources set aside for a specific purpose or allocated to particular entities or projects.

Financial Plan

A comprehensive evaluation of an individual's or organization's current pay and future financial state by using currently known variables to predict future income, asset values, and withdrawal plans.