Answer the Following Questions Using the Information Below

question 175

Multiple Choice

Answer the following questions using the information below:
At the Christopher Company, the cost of the library and information center has always been charged to the various departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs.

-If the number of employees is considered the cost driver, what amount of library and information center costs will be allocated to Department A?

• A)$100,000
• B)$25,000
• C)$0
• D)$112,500

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Definitions:

Homeostasis

The ability or tendency of an organism or cell to maintain internal equilibrium by adjusting its physiological processes.

Thoracic Cavity

The part of the body located between the neck and the abdomen, housing the lungs and heart among other organs.

Esophagus

The muscular tube that conveys food from the mouth to the stomach.

Trachea

The windpipe, a vital part of the respiratory system that provides air passage from the larynx to the bronchi of the lungs.