At the Spring Valley Company Company,the Cost of the Personnel

question 10

Multiple Choice

At the Spring Valley Company Company,the cost of the personnel department has always been charged to production departments based upon number of employees.Recently,opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.


If the number of new hires is considered the cost driver,what amount of personnel costs will be allocated to Department A? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar. )

• A)$43,759
• B)$6,845
• C)$109,980
• D)$47,913

Recognize the importance of correct supervision or evaluation in delegation.

Identify the requirements for effective conflict resolution in organizational settings.

Understand the concepts of power bases within an organization.

Grasp the notion of organizational outcomes and the role of coordination of resources to achieve them.

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Definitions:

Capital Project

A long-term investment undertaken to build, add or improve on a capital asset such as buildings or infrastructure, with the expectation of enhancing value.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded.

Incremental Cash Flows

The extra cash flow an organization gains by initiating a new project.

Total Cash Flows

The aggregate sum of cash entering and leaving a corporation, which plays a significant role in determining its financial fluidity.