High Traffic Products Corporation Has Two Departments,Small and Large

question 6

Multiple Choice

High Traffic Products Corporation has two departments,Small and Large.Central costs could be allocated to the two departments in various ways.

If advertising expense of $432,600 is allocated on the basis of sales,the cost per cost driver rate would be ________.

• A)$0.2 per dollar of sales
• B)$0.21 per dollar of sales
• C)$0.23 per dollar of sales
• D)$0.22 per dollar of sales

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Definitions:

Indian Casinos

Gambling facilities owned and operated by Native American tribes under the regulatory framework of the Indian Gaming Regulatory Act in the United States.

Gambling

The act of wagering money or valuables on the outcome of a game, contest, or other event with an uncertain result, with the primary intent of winning additional money or material goods.

Bankrupt

Describes a legal status for individuals or entities that cannot repay the debts they owe to creditors, often leading to legal proceedings for debt relief.