ABC Corporation Has Three Service Departments with the Following Costs

question 191

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 will be allocated to the Micro Division?

• A) $200,000
• B) $145,000
• C) $60,000
• D) $345,000

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Definitions:

Shock Approach

A technique used in sales and marketing to grab attention by surprising or startling the potential customer.

Curiosity

A strong desire to know or learn something, often driving exploration and innovation.

Testimonial

An endorsement or statement, typically from a satisfied customer, praising the value or quality of a product or service.

Proof Statement

A claim made to support the effectiveness or benefits of a product or service, often backed by data or testimonials.