Management of Children Are Precious (CAP), an Operator of Day-Care

question 41

Multiple Choice

Management of Children Are Precious (CAP) , an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data: CAP's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $60,000.
Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to the Irvine center?

• A) $17,838.
• B) $19,800.
• C) $20,000.
• D) $20,400.
• E) $21,000.

---

Definitions:

Self-disclosure

The act of revealing personal information about oneself to others, which can foster intimacy and trust in relationships.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often through art, conversation, or other forms of expression.

Universality

The quality or state of being universal; applicable or common to all purposes, conditions, or situations.

Therapeutic Factor

A concept in psychotherapy referring to the effective elements or processes that contribute to healing and change in therapy.