The Amount of Personnel Department Cost That Would Be Allocated

question 16

Multiple Choice

The amount of Personnel Department cost that would be allocated to Producing Department 2 under the direct method is closest to:

• A)$0
• B)$261,000
• C)$269,072
• D)$296,591

---

Definitions:

Simple Rate Of Return

A metric used to evaluate the gain or loss on an investment relative to the amount invested, expressed as a percentage.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity level to meet short-term obligations and operations.

Annual Net Operating Cash Inflows

The total amount of money that flows into a business from its operational activities, after all operational expenses have been paid, over a one-year period.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of a business.