question 154
Multiple Choice
Premium Company provides the following ABC costing information:
Activities Account inquiry Account billing Account verificationaccounts Correspondence letters Total costs Total Costs $200,000$140,000$75,000$25,000$440,000 Activity-cost drivers 10,000 hours 4,000,000 lines 40,000 accounts 4,000 letters The above activities are used by Departments A and B as follows:
Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A2,500 hours 400,000 lines 10,000 accounts 1,200 letters Department B4,000 hours 250,000 lines 8,000 accounts 1,600 letters
-How much of the account inquiry cost will be assigned to Department A?
Definitions:
Sherman Act
A foundational United States antitrust law aimed at maintaining competition by prohibiting monopolistic practices.
Restraint Of Trade
Actions or agreements that restrict competition or the free operation of the market, often illegal under antitrust laws.
Federal Trade Commission
A United States federal agency established to prevent unfair business practices and promote consumer protection.
Antitrust Laws
Legislation enacted to prevent monopolies and promote competition among businesses, ensuring fair market practices.