Use this information for ABC Corporation to answer the questions that follow.
ABC Corporation has three service departments with the following costs and activity base:
ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows:
-What is the service department charge rate for the Accounting Department?
Definitions:
Long-run Average Total Cost
The per unit cost of production when all inputs, including both fixed and variable costs, are adjusted to their optimal levels over time.
Automobile Manufacturing
The industry and process involved in designing, producing, marketing, and selling motor vehicles.
Ford Motor Company
An American multinational automaker founded by Henry Ford, known for revolutionizing the automobile industry.
Constant Returns to Scale
A condition where increasing all inputs by the same proportion results in an increase in output by that same proportion.
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