Answer the Following Question(s)using the Information Below

question 147

Multiple Choice

Answer the following question(s) using the information below:
Betty's Book and Music Store has two service departments, Warehouse and Data Centre.Warehouse Department costs of $175,000 are allocated on the basis of budgeted warehouse-hours.Data Centre Department costs of $75,000 are allocated based on the number of computer log-on hours.The costs of operating departments Music and Books are $125,000 and $150,000, respectively.Data on budgeted warehouse-hours and number of computer log-on hours are as follows:

-Using the direct method, what amount of Data Centre Department costs will be allocated to Department Music?

• A)$75,000
• B)$33,333
• C)$41,667
• D)$30,000
• E)$97,222

Understand the relationship between future profit expectations and stock prices.

Differentiate the performance and purposes of index funds versus actively managed mutual funds.

Comprehend the role of mutual funds as financial intermediaries.

Understand how corporations finance their operations and the implications of stock resales.

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Definitions:

Gross Margin Ratio

A measure of a company's financial health, calculated as gross profit divided by net sales, showing the percentage of sales revenue that exceeds the cost of goods sold.

Perpetual Inventory System

An inventory management method that records the sale or purchase of inventory immediately through electronic tracking.

Gross Method

An accounting approach for recording purchases at the gross invoice amount before any trade discounts are taken.

Merchandising Transactions

Business activities related to the buying and selling of merchandise, which may involve inventory purchases, sales transactions, and the return of goods.