Answer the Following Questions Using the Information Below

question 13

Multiple Choice

Answer the following questions using the information below:
Mertens Company provides the following ABC costing information:
The above activities are used by Departments A and B as follows:

-How much of the account inquiry cost will be assigned to Department A?

• A)$40,000
• B)$200,000
• C)$80,000
• D)None of these answers are correct.

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Definitions:

Risk Averse

A characteristic of individuals or entities that prefer to avoid risk, leading them to choose safer, more predictable options or investments.

Expected Value

The calculated average of all possible values for a random variable, weighted by their probabilities of occurrence.

Lottery

A form of gambling involving the drawing of numbers at random for a prize, often run by state or federal governments.

Risk Aversion

A preference for avoiding risk, where individuals or organizations opt for lower-risk options even when higher risks may offer greater potential rewards.