Pardee, Inc

question 3

Multiple Choice

Pardee, Inc. allocates engineering costs on the basis of the supervisor's time and administration costs on the basis of the number of employees. The company's accountant determined that engineering provides more services to administration than administration provides to engineering. The following data have been collected: Support Departments Operating Departments
Engineering Administration Assembly Finishing
Direct costs $25,000 $15,000 $200,000 $350,000
Number of employees 15 10 300 450
Engineering supervisor's time 30% 15% 35% 20%
If the direct method is used, the fraction of engineering costs allocated to the finishing department will be:

• A)20/55
• B)20/100
• C)20/70
• D)20/85

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Definitions:

Low-context Cultures

Cultures where communication is explicit, messages are direct, and understanding depends less on contextual cues than on the explicit content of the communication.

Implicit Messaging

Communication that occurs through nonexplicit means, often involving nuanced or indirect cues, as opposed to straightforward, direct messaging.

Future Orientation

The degree to which a culture chooses future rather than immediate results.

High-assertion Culture

A workplace culture that encourages assertiveness, straightforward communication, and standing firm on one's decision or opinion.