The James Company Has Four Departments with Data as Follows

question 72

Multiple Choice

The James Company has four departments with data as follows:
$\begin{array} { | l | r | r | r | r | } \hline & { \text { Service Departments } } && \text { Operating Departments } \\\hline & \text { Cafeteria } & \text { Maintenance } & \text { Milling } & \text { Finishing } \\\hline \text { Budgeted Costs } & \$ 12,000 & \$ 10,000 & \$ 42,000 & \$ 38,000 \\\hline \text { Number of Employees } & 12 & 10 & 84 & 66 \\\hline \text { Labour Hours } & 1,500 & 1,250 & 5,250 & 4,750 \\\hline\end{array}$

- Suppose Maintenance Department costs are allocated on the basis of labour hours.What would be the amount of cost allocated to Milling from Maintenance under the direct method?

• A) $5,250.
• B) $5,600.
• C) $5,700.
• D) $6,720.

Recognize the effect of depreciation, amortization, gains, and losses on the cash flow statement.

Understand the classification of activities reported on the statement of cash flows.

Prepare the statement of cash flows using the indirect method.

Identify and classify operating, investing, and financing activities.

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Definitions:

Leadership

The act of guiding or influencing a group towards the achievement of goals, involving vision, inspiration, and direction.

Influencing

Refers to the capacity or power to affect others' views, behavior, or decisions, often used within leadership, marketing, and social interaction contexts to achieve desired outcomes.

Negotiators

Individuals or parties involved in discussions aimed at reaching an agreement or resolving a dispute.

Listening

The act of actively paying attention to and comprehending auditory information being communicated.