Answer the Following Questions Using the Information Below

question 141

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 engineers 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:

Supply Chain Management

The strategic linking of all operations dealing with resource supplies.

Customer Relationship Management

The strategic attempt to build lasting relationships with and to add value to customers.

Information Technology

The study and use of systems for storing, retrieving, and sending information.

Processing Information

The method by which individuals or systems receive, interpret, and respond to information.