Answer the Following Questions Using the Information Below:
Trustme Vehicle

question 118

Multiple Choice

Answer the following questions using the information below:
Trustme Vehicle Rental Corporation has two departments,Car Rental and Truck Rental.Central costs may be allocated to the two departments in various ways.
$$\begin{array} { l r r } & \text { Car Rental } & \text { Truck Rental } \\\text { Number of vehicles in fleet } & 700 & 300 \\\text { Number of employees } & 150 & 50 \\\text { Sales } & \$ 1500000 & \$ 750000\end{array}$$
-If the administrative expense of $125 000 is allocated on the basis of number of employees,the amount allocated to the Car Rental Department would be:

• A)$31 250
• B)$125 000
• C)$93 750
• D)$75 000

Define and classify costs in different cost categories (direct materials, direct labor, and manufacturing overhead).

Explain the importance of managerial accounting in decision-making processes.

Differentiate between financial and managerial accounting, and recognize their specific roles in business contexts.

Understand the difference between period costs and product costs, and their reporting in financial statements.

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Definitions:

Supply Chain

The interconnected sequence of processes involved in the production and distribution of a commodity, from raw materials to end-user delivery.

Distributor

An intermediary entity between the producer of a product and another entity in the distribution channel or supply chain, such as a retailer or end consumer.

Manufacturer Profit

The financial gain a manufacturing company obtains from producing and selling its goods, calculated by subtracting costs from revenue.

Retailer Profit

The financial gain that a retailer earns from selling products or services, after subtracting the costs of purchasing or producing those items.