Busy Beaver Allocates Advertising Expenses to Its Two Departments, a and B

question 27

Multiple Choice

Busy Beaver allocates advertising expenses to its two departments, A and B, on the basis of sales. For the current year the sales for department A are $800 000 and for department B $200 000 and total advertising expenses are $16 800. The amount allocated to the two departments is:

• A) A $14 400: B $2400.
• B) A $13 440: B $3360.
• C) A $8400: B $8400.
• D) A $12 600: B $4200.

Understand the role and principles of reconciliation in maintaining accurate cash records.

Interpret the functions and importance of documentation and verification in internal control.

Distinguish between acceptable internal control practices and practices that lead to a violation of internal control principles.

Assess the impact of human resource controls like bonding and background checks in enhancing internal security.

---

Definitions:

Repositioning

The process of changing the market position of a product or a brand to target new demographics or market segments.

Target Market

The specific segment of consumers most likely to be interested in a company's product or service, characterized by specific demographics or behaviors.

Primary Market

The financial market where new securities are issued and sold for the first time to investors.

Marketing Efforts

The actions companies take to promote and sell their products or services in the market.