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Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham.Brandon uses an activity-based costing system.The Atlanta office has its costs for Administration and Legal allocated to the two branch offices.Brandon has provided the following information:
How much of Atlanta's cost will be allocated to Birmingham?
Interest
The charge for borrowing money or the return on invested capital, typically expressed as an annual percentage rate.
EBITDA Coverage Ratio
A financial metric that assesses a company's ability to pay off its debts, calculated by dividing EBITDA by total debt service costs.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.
Interest Charges
Costs incurred by borrowers for the use of borrowed money, typically expressed as an annual percentage rate.
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