Answer the Following Questions Using the Information Below

question 163

Multiple Choice

Answer the following questions using the information below:
King Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.

-If advertising expense of $300,000 is allocated on the basis of sales, the amount allocated to the Small Department would be:

• A)$50,000
• B)$75,000
• C)$210,000
• D)$250,000

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Definitions:

Net Present Value

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used to evaluate the profitability of an investment.

Equity-Financed

Refers to funding a company's operations or projects through the sale of shares, rather than borrowing or using current assets.

Price Per Share

The market price of a single share of a company’s stock, representing the smallest unit of the company’s equity that investors can purchase.