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Answer the Following Questions Using the Information Below:
the Charmatz

question 83

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Answer the following questions using the information below:
The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year:
Budgeted costs of operating the copying facility
 for 400,000 to 600,000 copies:  Fixed costs per year $60,000 Variable costs 3 cents (.03)  per copy  Budgeted long-run usage in copies per year:  Marketing Department 120,000 copies  Operations Department 380,000 copies \begin{array}{lll}\text { for } 400,000 \text { to } 600,000 \text { copies: }\\\text { Fixed costs per year }&\$60,000\\\text { Variable costs }&3 \text { cents }(.03) \text { per copy }\\\text { Budgeted long-run usage in copies per year: }\\\text { Marketing Department } & 120,000 & \text { copies } \\\text { Operations Department } & 380,000 & \text { copies }\end{array} Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Marketing Department was 80,000 copies and by the Operations Department was 360,000 copies.
-If a dual-rate cost-allocation method is used,what amount of copying facility costs will be budgeted for the Operations Department?

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Definitions:

Luxury Good

A good for which demand increases more than proportionally as income rises, in contrast to a "necessity good," for which demand is not related to income.

Total Revenue

The total amount of money a company receives from its sales of goods or services, calculated by multiplying the price per unit by the number of units sold.

Demand Elastic

Referring to a situation where the quantity demanded of a good or service significantly changes in response to a change in its price.

Price-Elasticity Coefficient

A numeric value that measures how much the quantity demanded of a good responds to a change in the price of that good, indicative of its price sensitivity.

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