Beta Company Is Preparing Its Annual Profit Plan

question 50

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 purchases orders to compute activity-based costs?

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

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Definitions:

Buffer

In the context of communication, it refers to a method or element that decreases the impact of a message, often used to soften negative news.

Trivialize

To make something seem less important, serious, or complex than it actually is.

Confidence Rebuild

The process of restoring self-assurance and belief in one’s own abilities after a period of doubt.

Defamation

The action of damaging the good reputation of someone through false or unjustified statements, which can be libel if written or slander if spoken.