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Author Question: Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated ... (Read 115 times)

V@ndy87

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Question 1

Service companies, in particular, find great value from ABC because a vast majority of their cost structure is composed of ________ costs.
◦ prime
◦ factory
◦ indirect
◦ committed

Question 2

Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.

 Car Rental  Truck Rental
Number of Vehicles in fleet 900 460
Number of employees 145 55
Sales $700,000 $390,000

If administrative expense of $62,800.00 is allocated on the basis of number of employees, the cost per cost driver rate would be ________.
◦ $433.10
◦ $314.00
◦ $1,141.82
◦ $46.18


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Marked as best answer by V@ndy87 on Mar 6, 2021

dajones82

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V@ndy87

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


coreycathey

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Reply 3 on: Yesterday
Excellent

 

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