Animer Inc. Provides the Following Information

question 72

Multiple Choice

Animer Inc. provides the following information.
Corporate advertising costs = $800,000
Division A - $4,500,000
Division B - $7,500,000
Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues.
-What is the allocated corporate costs for Division A?

• A) $500,000
• B) $600,000
• C) $300,000
• D) $200,000

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Definitions:

Net Working Capital

A financial metric that measures a company's ability to pay off its current liabilities with its current assets.

Current Liabilities

Short-term financial obligations due within one year, typically including accounts payable, short-term loans, and accrued expenses.

Prompt Payment Discount

A reduction in the amount owed by a buyer to a seller, provided the payment is made within a specified timeframe.

Borrowing Rate

The interest rate charged by banks or financial institutions on loans to their customers.