Bilkins Financial Advisors Provides Accounting and Finance Assistance to Customers

question 81

Multiple Choice

Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and they normally have about 8,000 billable hours per year. Professional staff keep detailed timesheets distributed by client number. Office and administrative costs total $754,000 a year. What is the cost allocation rate that Bilkins will use for direct labor i.e. the cost of the professional staff?

• A) $75 per hour
• B) $36 per hour
• C) $72 per hour
• D) $76 per hour

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Definitions:

Intangibles

Non-material factors that can influence negotiations, such as reputation, relationships, or principles.

Bargaining mix

The range of topics, issues, or objectives that parties negotiate and discuss in an attempt to reach an agreement.

Avoidance strategy

A method chosen to sidestep potential problems, conflicts, or risks by staying away from certain actions or decisions.

Alternatives

Other options or choices available to individuals or parties, often considered in decision-making or negotiation.