(Appendix 4B) Watts Corporation Has a Custodial Services Department That

question 36

Multiple Choice

(Appendix 4B) Watts Corporation has a Custodial Services Department that services the company's Maintenance Department and its two operating departments. Costs of the Custodial Services Department are allocated to other departments on the basis of square feet of space occupied. The amount of space occupied by each department is given below:
Budgeted costs in the Custodial Services Department total $43,200.
-Suppose the company uses the direct method of allocation.The amount of Custodial Services Department cost allocated to Operating Department 2 would be:

• A) $25,920
• B) $27,000
• C) $28,800
• D) $21,600

---

Definitions:

Brand Ambidexterity

The ability of a brand to balance exploitation of existing assets with the exploration of new opportunities, ensuring long-term success.

Capabilities Matching

The process of aligning a company's strengths and resources with opportunities in the market to maximize effectiveness.

Transformation Stage

A phase within a process where significant change or metamorphosis occurs, leading to a new form or structure.

Brand Ambidexterity

The capability of a brand to balance and manage both the exploration of new business opportunities and the exploitation of existing ones efficiently.