The Copy Department in the College of Business at State

question 33

Multiple Choice

The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Economics Department.The following budget has been prepared for the year. If the Copy Department uses a dual rate for allocating its costs based on usage,how much cost will be allocated to the Marketing Department?

• A)$85,000.
• B)$90,000.
• C)$150,000.
• D)$170,000.

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Definitions:

Money

A medium of exchange that enables the transfer of goods and services among parties.

Forward Rate

The interest rate agreed today for a loan to be made in the future.

Arbitrage Opportunities

Situations in which it is possible to simultaneously buy and sell assets in different markets or in different forms to benefit from price differences without risk.

Nominal Risk-free Rate

The interest rate on a risk-free security that does not account for inflation.