At the Wild Cat Group Company,the Cost of the Library

question 164

Multiple Choice

At the Wild Cat Group Company,the cost of the library and information center has always been charged to the various departments based upon number of employees.Recently,opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs.


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

• A)$40,524
• B)$45,331
• C)$8,600
• D)$130,813

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how frequently a business can convert its accounts receivable into cash over a specific period.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Operating Cycle

The period between the acquisition of inventory by a business and the collection of accounts receivable generated from the sale of that inventory.

Acquisition Of Inventory

The process through which a business purchases goods to be sold, which may be raw materials for manufacturing or finished goods for resale.