Thacker Company Has Two Regional Offices

question 56

Multiple Choice

Thacker Company has two regional offices. The data for each are as follows: What is the return on investment for the New Jersey Division?

• A)0.21
• B)0.27
• C)0.48
• D)2.06

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Definitions:

Service Department Allocations

The process of distributing the costs of service departments to producing or operating departments based on their usage of services.

Service Department Charge Rate

The rate at which internal service departments charge other parts of the same organization for the services rendered.

Accounting Department

The division within a company responsible for managing financial records, ensuring compliance with accounting standards, and producing financial statements.

Service Department Cost

Involves the expenses associated with the departments that do not directly produce goods but provide support or services to other departments within an organization.