All of Eva Enterprise's Operations Are Housed in One Building

question 113

Multiple Choice

All of Eva Enterprise's operations are housed in one building with the costs of occupying the building accumulated in a separate account. The total costs incurred in July amounted to $48,000. The company allocates these costs on the basis of square feet of floor space occupied. Administrative offices, sales offices, and factory operations occupy 9,000, 6,000, and 30,000 square feet, respectively. How much will be classified as a product cost for July?

• A)$9,600
• B)$6,400
• C)$16,000
• D)$32,000

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Definitions:

Collaboration

The act of working together with one or more people to achieve a common goal or project.

Teamwork

Teamwork involves the collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.

Coordinated Series

A sequence of elements, events, or activities that are planned or occur in a mutually supportive manner.

Intuitive Appeal

The natural attractiveness or persuasiveness of an idea or product based on its apparent simplicity or the ease with which it can be understood and appreciated.