(Appendix 7A) Gauch Corporation Is Conducting a Time-Driven Activity-Based Costing

question 30

Multiple Choice

(Appendix 7A) Gauch Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study:
The cost per minute of the resource supplied is $0.40.
-On the Customer Cost Analysis report in time-driven activity-based costing,the Receiving Calls cost assigned to Customer N would be closest to:

• A) $117.60
• B) $108.00
• C) $77.60
• D) $7.20

---

Definitions:

Organisation Chart

A visual diagram that represents the structure of an organization, showing the relationships and relative ranks of its parts and positions/jobs.

Informal Decision-Making Coalitions

Groups within an organization that form outside of the formal organizational structure to influence decisions based on shared interests or goals.

Formal Communication Channels

Established pathways for the flow of information and communication within an organization that follow its hierarchical structure.

Departmentalisation

The division of an organization into discrete segments based on function, product, geographical location, or customer, to enhance efficiency and performance.