The College of Business Administration Needs to Distribute $12,000 Received

question 38

Essay

The College of Business Administration needs to distribute $12,000 received from an anonymous donor and earmarked for three business student organizations,Beta Alpha Psi (BAP),Delta Sigma Pi (DSP),and Beta Gamma Sigma (BGS).Relevant information is provided below:
$$\begin{array} { l r r r } \text { Possible Cost Driver } & \text { BAP } & \text { DSP } & \text { BGS } \\\text { Nurnber of students } & 30 & 40 & 100 \\\text { Budgeted expenses } & 5 5 , 5 0 0 &\$4,000 &\$ 500 \\\text { Nurnber of orgarizations } & 1 & 1 & 1\end{array}$$ Assume that each organization wishes to obtain the highest funding possible.
Required:
1)Which cost driver will each organization recommend be used to distribute the funds?
2)Which cost driver would you recommend and why?

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Definitions:

Saudi Arabian Riyals

The official currency of Saudi Arabia, used for all financial transactions within the country.

U.S. Dollars

The official currency of the United States, commonly represented by the symbol $.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Total Liabilities

The sum of all debts and financial obligations a company owes to outside parties.