Premium Company Provides the Following ABC Costing Information The Above Activities Are Used by Departments a and B

question 103

Multiple Choice

Premium Company provides the following ABC costing information:
$$\begin{array} { l r c } \text { Activities } & \text { Total Costs } & \text { Activity-cost drivers } \\\text { Account inquiry } & \$ 200,000 & 10,000 \text { hours } \\\text { Account billing } & \$ 140,000 & 4,000,000 \text { lines } \\\text { Account verificationaccounts } & \$ 75,000 & 40,000 \text { accounts } \\\text { Correspondence letters } & \$ 25,000 & 4,000 \text { letters } \\\text { Total costs } & \$ 440,000 &\end{array}$$ The above activities are used by Departments A and B as follows:
$$\begin{array} { l c c } & \text { Department } \mathrm { A } & \text { Department } \mathrm { B } \\\text { Account inquiry hours } & 2,500 \text { hours } & 4,000 \text { hours } \\\text { Account billing lines } & 400,000 \text { lines } & 250,000 \text { lines } \\\text { Account verification accounts } & 10,000 \text { accounts } & 8,000 \text { accounts } \\\text { Correspondence letters } & 1,200 \text { letters } & 1,600 \text { letters }\end{array}$$
-How much of the total costs will be assigned to Department B?

• A) $117,350
• B) $113,250
• C) $113,750
• D) $112,350

Recognize the impact of demographic conditions on the Social Security system.

Identify the future financial challenges of the Social Security system due to demographic shifts.

Comprehend how the Social Security system is financed.

Analyze the disparity in benefits received by different demographic groups.

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Definitions:

Believability

The quality of being able to be believed or trusted.

Specific Praise

Positive feedback that is detailed and focused on particular aspects of someone's performance or work.

Credentials

Qualifications, achievements, personal qualities, or aspects of one's background, typically used to indicate that they are suitable for something.

"You" Attitude

The "You" attitude is a communication approach that focuses on the audience's needs and perspectives, emphasizing the benefits to them rather than to the speaker or writer.