Horn_CH_10TB 13

A 50000 b 12500 c 0 d 56250 answer b explanation b

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Unformatted text preview: er: A Explanation: A) [ Diff: 2 T 3 AACSB: Communication 84) If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A? A) $12,000 B) $5,333 C) $51,200 D) $20,000 Answer: C Explanation: C) [ Diff: 2 T 3 AACSB: Analytical skills 85) Which cost estimation method is being used by Jordan Company? A) the industrial engineering method B) the conference method C) the account analysis method D) the quantitative analysis method Answer: B Diff: 2 Terms: cost estimation Objective: 3 AACSB: Analytical skills Answer the following questions using the information below: At the Holden Company, the cost of the library and information center has always been charged to the various departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs. Total library and information center costs are $75,000. Department Number of employees The number of engineers 86) A 125 0 B 500 75 C 125 25 Which cost estimation method is being used by Holden Company? A) the quantitative analysis method B) the industrial engineering method C) the conference method D) the account analysis method Answer: C Diff: 2 Terms: cost estimation Objective: 3 AACSB: Communication 87) If the employees is considered the cost driver, what amount of library and information center costs will be allocated to number of Department A? A) $50,000 B) $12,500 C) $0 D) $56,250 Answer: B Explanation: B) [ Diff: 2 T 3 AACSB: Analytical skills 88) If the engineers is considered the cost driver, what amount of library and information center costs will be allocated to number of Department A? A) $50,000 B) $12,500 C) $0 D) $56,250 Answer: C Explanation: C) [ Diff: 2 T 3 AACSB: Analytical skills Answer the following questions using the information below: Penny's TV and Appliance Store is a small company that has hired you to perform some management advisory services. The...
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