ABC Corporation Has Three Service Departments with the Following Costs

question 141

Multiple Choice

ABC Corporation has three service departments with the following costs and activity base: ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows:
How much service department cost would be allocated to the Macro Division?

• A) $405,000
• B) $175,000
• C) $130,000
• D) $305,000

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Definitions:

Autarky Price

The price of a good or service within a country that is self-sufficient and does not engage in international trade for that good or service.

Organization Performance

Measures how effectively an organization reaches its objectives, often evaluated through financial results, customer satisfaction, and operational efficiency.

Executive Performance

refers to the effectiveness and efficiency with which the highest ranking members of an organization, such as CEOs and directors, fulfill their roles and responsibilities.

Maturity Curve

A maturity curve is a schedule specifying the amount of annual increase a person will receive.