Hilton Hamlet Corp Using the Step-Down Method and Assuming Human Resources Cost Is

question 26

Multiple Choice

Hilton Hamlet Corp. has an Advertising Department and a Human Resources Department that provide service to three store locations. The Human Resources Department cost is allocated on the basis of employees, and the Advertising Department cost is allocated on the basis of space. The following information is available: $\begin{array} { l r r r r r } & \begin{array} { c } \text { Human } \\\text { Resources }\end{array} & \text { Advertising } & \text { Store \#1 } & \text { Store \#2 } & \text { Store \#3 } \\\text { Budgeted Cost } & \$ 30,000 & \$ 15,000 & & & \\\begin{array} { l } \text { Space in Square }\end{array} & 2,000 & 500 & 10,000 & 33,000 & 40,000 \\\text { feet } & \\\text { Number of } & 10 & 5 & 20 & 50 & 35\\\text { Employees } & & & & & \\\end{array}$ Using the step-down method and assuming Human Resources cost is allocated first, the amount of Advertising cost allocated to Store #2 is:

• A)$5,789.
• B)$5,964.
• C)$6,506.
• D)$7,500.
• E)$11,579.

Analyze real-world business strategies through the lens of CSR.

Comprehend the impact of CSR strategies on stakeholder satisfaction and organizational performance.

Describe the utilitarian view of ethical behavior and its significance in business decisions.

Recognize the role of ethics and social responsibility in contemporary organizational management.

---

Definitions:

Initial Margin

The minimum amount of capital required to be deposited in a margin account before trading on margin or selling short.

Underwriting Arrangement

The process by which an underwriter brings a new security issue to the public, often assuming the risk of selling the securities.

Investment-Banking Firm

A financial institution that assists individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities.

Underwriting Syndicate

A group of investment banks that work together to issue new securities to the market, sharing the risk and responsibility of selling the offering.