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:

Histogram

A graphical representation of the distribution of numerical data, typically shown as bars indicating the frequency of different intervals of values.

Skewed Right

A distribution shape where the tail is longer on the right side, indicating that the majority of the data points are located to the left.

Olympic Games

A major international multi-sport event featuring summer and winter sports competitions in which thousands of athletes participate in a variety of competitions.

High Jumps

An athletic event in which competitors try to leap over a horizontally positioned bar at the highest possible height.