Wilson Trade School Allocates Administrative Costs to Its Respective Departments

question 157

Multiple Choice

Wilson Trade School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount allocated to the Automotive Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000?

• A) $0.
• B) $17,000.
• C) $18,500.
• D) $22,667.
• E) $30,000.

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Definitions:

Finance Department

The division within an organization responsible for managing its financial activities, including planning budgets, tracking cash flow, and analyzing financial statements.

Large Corporation

A significantly sized company typically characterized by vast operations, substantial revenues, and a large number of employees.

Financial Asset

An intangible asset representing a legal claim to future payment, such as stocks, bonds, or bank deposits.

Security

A financial asset. Commonly a stock or a bond. An asset pledged to guarantee the repayment of a loan.