Flamingos,Inc

question 201

Multiple Choice

Flamingos,Inc.has four departments.The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space.Data for these departments follows: The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is:

• A)$4,800.
• B)$12,000.
• C)$10,000.
• D)$18,000.
• E)$13,000.

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Definitions:

Rationale

The underlying reason or logic behind a decision, practice, or theory.

Parent Entities

Companies that own enough voting stock in another company to control management and operations by influencing or electing its board of directors.

Consolidated Financial Statements

Financial reports that aggregate the financials of a parent company and its subsidiaries into one comprehensive document.

Equity Method

An accounting technique used to assess investments in which the investor has significant influence over the investee but does not exert full control.