Use the Information Below to Answer the Following Question(s)

question 6

Multiple Choice

Use the information below to answer the following question(s) .A dental office is in the process of changing their costing system.Their system currently uses a single direct cost pool (professional labour) and a single indirect cost pool (staff support) .The direct categories in the new, refined costing system include:
1.Professional partner labour.Average total annual compensation of the two partners is $100,000; and, each partner has 2,000 hours of budgeted billable time.2.Dental assistant labour.Average total annual compensation of the four assistants is $22,500 each, and each assistant has 2,000 hours of budgeted billable time.3.Office staff.Average total annual compensation of the two staff members is $15,000 each, and each has 2,000 hours of budgeted billable time.The indirect category in the new refined costing system includes professional liability insurance.The budgeted indirect amount is $200,000, and the allocation base is budgeted professional labour hours.The dentist and dental assistants are considered professional labour hours.
-What is the budgeted indirect cost allocation rate per unit of the allocation base for the professional liability insurance?

• A)$16.67
• B)$25.00
• C)$1.67
• D)$26.67
• E)$12.50

Acknowledge the process of creating and implementing service plans for clients.

Understand the terms used in case management and their application, including "service objective".

Identify the best practices for referral processes in case management.

Recognize the necessity of comprehensive services and the avoidance of service duplication.

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Definitions:

Intrinsic Value

The actual value of a company, asset, or currency determined through fundamental analysis without reference to its market value.

Return

The gain or loss made on an investment over a specified period, typically expressed as a percentage of the investment’s initial cost.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses investments to generate earnings growth.

Dividend Growth Rate

The annual percentage rate at which a company's dividend payments to shareholders increase.