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

question 69

Multiple Choice

Use the information below to answer the following question(s) .Joe's Tire Company has two support departments, Personnel and Maintenance.The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used.The Personnel Department costs of $20,000 are allocated based on the number of employees.Costs of Departments A and B are $40,000 and $60,000, respectively.Data on standard service hours and number of employees are as follows:

-How much of the cost of the Personnel Department is allocated to Department A using the direct method?

• A)$5,000
• B)$15,000
• C)$4,211
• D)$12,632
• E)$40,000

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Definitions:

Cash Flows

Cash flows represent the movement of money into and out of a business, indicating its liquidity and financial health.

Early Years

Early years typically refers to the period in human development from birth to the start of formal education, emphasizing the importance of nurturing and education in a child's early life.

Time Value

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity, which is a core principle in finance.

Capital Investment Evaluation

The process of assessing the profitability and risk of potential investment opportunities, using methods such as net present value, return on investment, or payback period.