These Three Tables Show the Floor Layout of 5 Departments

question 79

Multiple Choice

These three tables show the floor layout of 5 departments in an office building, the average number of daily trips between each pair of offices, and the distance between each pair of offices. What is the total cost of this layout if there is a $0.50 per foot transportation cost? Average number of trips between departments
$$\begin{array} { | l | c | c | c | c | c | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { A } & \cdots & 25 & 15 & 25 & 30 \\\hline \text { B } & & \cdots & 40 & 50 & 35 \\\hline \text { C } & & & \cdots & 15 & 15 \\\hline \mathrm { D } & & & & \cdots & 20 \\\hline \text { E } & & & & & \cdots \\\hline\end{array}$$ $$\begin{array} { | l | l | l | } \hline \mathrm { A } & \mathrm { B } & \mathrm { D } \\\hline & \mathrm { C } & \mathrm { E } \\\hline\end{array}$$ Distance between departments (feet)
$$\begin{array} { | l | c | c | c | c | c | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { A } & \cdots & 20 & 25 & 40 & 45 \\\hline \text { B } & & \cdots & 5 & 20 & 25 \\\hline \text { C } & & & \cdots & 25 & 20 \\\hline \text { D } & & & & \cdots & 5 \\\hline \text { E } & & & & & - \\\hline\end{array}$$

• A)$460.00
• B)$2300.00
• C)$3037.50
• D)$4785.50

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Definitions:

Direct Expenses

Costs that can be directly traced to a specific cost object, such as a product, department, or project.

Joint Benefit

The advantages or profits derived from a venture, project, or activity that are shared by all participating parties.

Department

A specialized functional area within an organization, focused on a specific area of activity or responsibility.

Selling Department

A division within a company responsible for managing sales activities and strategies to sell products or services.