Use the Information Below to Answer the Following Question(s)

question 7

Multiple Choice

Use the information below to answer the following question(s) :
Hinckley & Granger Company had the following activities, estimated indirect activity costs, and allocation bases:

Hinckley & Granger uses activity-based costing.
The above activities are used by Departments P and Q as follows:

-How much of the account inquiry cost will be assigned to Department Q?

• A) $8,000
• B) $9,000
• C) $18,000
• D) $6,000

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Definitions:

Scarce Resources

Resources that are limited in availability and can be used for the production of goods and services.

Savers

Individuals or entities that set aside a portion of their income for future use, often in interest-bearing accounts or investments.

Financial Markets

Markets where financial securities, such as stocks and bonds, are issued and traded among investors.

Investment Tax Credit

A tax credit offered to businesses to encourage them to invest in certain assets, reducing their tax liability.