Answer the Following Questions Using the Information Below

question 50

Multiple Choice

Answer the following questions using the information below:
Monster Vehicle Rental Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.

-If advertising expense of $75,000 is allocated on the basis of sales, the amount allocated to the Car Rental Department would be:

• A)$50,000
• B)$62,500
• C)$25,000
• D)$37,500

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Definitions:

SEC

The Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

Short Positions

An investment strategy where an investor sells a security they do not own, betting that its price will decrease.

Futures Contract

An agreement to buy or sell a specified quantity of a commodity or financial asset at a predetermined price at a specified future date.

Delivery Date

The specific date on which a financial transaction, typically involving commodities or currencies, is set to be completed.