Exhibit 7-6 -Given Exhibit 7-6,what Is the Portfolio Beta

question 51

Multiple Choice

Exhibit 7-6

-Given Exhibit 7-6,what is the portfolio beta?

• A) 0.4987
• B) 0.9273
• C) 0.3791
• D) 1.2367

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Definitions:

Service Department Allocations

The process of distributing the costs of service departments to producing or operating departments based on their usage of services.

Service Department Charge Rate

The rate at which internal service departments charge other parts of the same organization for the services rendered.

Accounting Department

The division within a company responsible for managing financial records, ensuring compliance with accounting standards, and producing financial statements.

Service Department Cost

Involves the expenses associated with the departments that do not directly produce goods but provide support or services to other departments within an organization.