Beta Company Is Preparing Its Annual Profit Plan

question 59

Multiple Choice

Beta Company is preparing its annual profit plan.As part of its analysis of the profitability of its customers,management estimates that the $12,000 for sales support should be assigned to the individual customers from the information given as follows: What is the amount of the sales support costs that should be allocated to Customer A assuming Beta uses units purchased to compute activity-based costs?

• A)$2,400.
• B)$4,000.
• C)$8,000.
• D)$9,600.

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Definitions:

Community

In ecology, a community is a group of interacting species living in the same area, sharing a common environment.

Small Numbers

A numerical quantity categorized as being less than some arbitrary value, often context-specific.

Keystone Species

A species that plays a critical role in maintaining the structure of an ecological community, affecting many other organisms in the ecosystem.

Local Environment

The immediate physical and biological surroundings of an organism, influencing its growth and development.