A rider whereby premiums are assured to be payee on a juvenile policy is called: a payor rider.
What is a Payor writer?The person making the payment, satisfying the claim, or settling a financial obligation. For example, the person writing a check is the payor, or an employer paying their worker is the payor.
A payor writer is a type of rider whereby an individual is exempted from paying premium if the premium payor becomes late, or based on the fact that they are totally disabled before the juvenile reaches majority or the total disability occurred before the 25th birthday of the person that is being insured.
Thus, in any of the two scenarios, the subsequent premiums that ought to be payee by the premium payor is therefore waved automictically, which is based on a juvenile policy.
In conclusion, we can state that, a writer whereby premiums are assured to be payee on a juvenile policy is called: a payor writer.
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When a firm applies statistical techniques to develop and maintain its ability to produce high-quality goods and services, it is implementing statistical _____.quality control
When a firm applies statistical techniques to evolve and maintain its ability to produce high-quality goods and services, it is enforcing statistical quality control.
Quality control is a procedure through which a business pursues to assure that product grade is sustained or enhanced. Quality control implicates testing divisions and determining if they are within the specifications for the conclusive outcome. The quality control utilized in a business is favorably conditional on the product or industry, and several methods exist for measuring quality. The food enterprise uses quality control techniques to assure consumers do not get sick from their products.
Quality control develops safe measures that can be executed to make certain deficient or harmed products not terminate with consumers.
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what happens when the price of a good or service increases?
When the price of a good or service increases, the quantity demanded decreases.
The rule of demand is a fundamental principle in microeconomics that maintains that there is an inverse relationship between price and quantity demanded.
In other words, "conditioned on all else being equal, as the price of an item increases quantity demanded would drop; conversely, if the price of a good decreases , quantity demanded will grow.
"When we say that a person's demand for anything increases, we mean that he will buy more of it than he would before at the same price, and that he will buy as much of it as before at a higher price," Alfred Marshall wrote.
The demand curve is a graph that depicts the law of demand, with amount desired on the x-axis and price on the y-axis. According to the law of demand, demand curves are downward sloping.
The law of demand, in conjunction with the law of supply, determines the most efficient allocation of resources in an economy by determining the equilibrium price and quantity.
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a corporation wishes to raise additional capital by making use of a rights offering. one of your clients owns 200 shares of the issuing corporation's common stock and 100 shares of its preferred stock. the terms of the offering state that four rights will be necessary to purchase one new share at the subscription price of $20. the current market price of the stock is $24 per share. how many rights will your client receive?
B) 200 On your exam, shareholders will always receive one right for every share of common stock they own, regardless of the number of new shares offered or the number of rights required to purchase each new share.
200 rights correspond to the client's ownership of 200 shares. With preferred stock, rights are never granted.
After a rights issue, what happens to the price of shares?
The rights issue will result in the issuance of new shares at a price that is lower than the market price. Take, for instance, a stock that is trading at Rs. 500 shares, then the appropriate issue might be Rs. 500 at a discount of 20%. 400 shares each.
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Full Question = A corporation wishes to raise additional capital by making use of a rights offering. One of your clients owns 200 shares of the issuing corporation's common stock and 100 shares of its preferred stock. The terms of the offering state that four rights will be necessary to purchase one new share at the subscription price of $20. The current market price of the stock is $24 per share. How many rights will your client receive?
A)
75
B)
200
C)
50
D)
300
Which of the following statements about the impact of a company's competitive efforts in a 0 region on its regional market share and number of branded pairs sold is false o Companies whose delivery times are in a region are shorter than the all-company average disadvantage in attracting footwear retailers to stock their brand O The bigger is a company's model-based competitive advantage in a region, the bigger the positive impact on its pairs sold and market share in that region O A company's sales/market share outcomes in a region's Wholesale Segment are positively impacted when its number of retail outlets is above the regional average and are negatively impacted when its number of retail outlets is below the regional averageO A company's expenditures for brand advertising in each geographic region is judged to be competitively strong when its annual brand advertising expenditures exceed the all-company regional averageO A company's pairs sold and market share outcomes in a region are negatively impacted have a competitive when its brand reputation is below the regional average, and this negative impact becomes progressively larger as the size of the percentage below the regional average increases .
The claim that a footwear manufacturer obtains the greatest potential styling- and quality-based competitive advantage in a certain region is untrue.
A corporation has a competitive edge if it can produce goods or services more quickly, cost-effectively, or both than its rivals. These elements provide it the ability to generate more sales than its rivals in the market. Only Option B interferes with a company's efforts to increase regional market share and the number of branded pairs. We can see that celebrity endorsement stands out from the competition and significantly affects sales. As a result, offering variety and styles benefits both the band's reputation and sales, both of which are essential for increasing sales. As a result, choice B is appropriate. The claim that a footwear manufacturer obtains the greatest potential styling- and quality-based competitive advantage is untrue.
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suppose the cross-price elasticity of demand between one good and another good is 2. the good would be classified as:
An indicator of the link between the cost of good 1 and the amount of good 2 that is wanted is the cross-price demand elasticity. When demand for good 2 declines as the cost of product 1 rises, it suggests that the two products are substitutes.
What is demand elasticity?A good's quantity sought is calculated using its price's demand elasticity. Almost all items see a decline in demand when prices rise, but certain goods are more affected than others. When a price goes up by 1% but all other variables stay the same, the amount desired will vary in relation to that change. A 1% rise in price causes a 2% decrease in the amount sought if the elasticity is 2. The impact of changes in those other factors on the required quantity is quantified by various elasticities. Price elasticities are usually negative and only seldom positive. The precise definition, which specifies that the good possesses an elasticity of 2, is usually always meant when a thing is said to have an elasticity of 2.
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How do you calculate manufacturing overhead rate?
Divide your monthly sales by that number, then multiply it by 100 to get a percentage. The formula for manufacturing overhead is as follows: Manufacturing Overhead Costs / Sales x 100 = Percent.
By manufacturing, what do you mean?
Making products by hand or machine with the intention of selling them to clients after they are finished is known as manufacturing. Raw materials or individual elements of a bigger product can be used as manufacturing inputs. On a large-scale production line with equipment and skilled people, manufacturing often takes place.
Manufacturing is the complete form of MFG. It uses manual labour, machines, equipment, chemicals, and other means to transform raw materials or component parts into finished things.
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when changes are proposed in an organization, managers should take a holistic view of the organization and the specific project impacted by the change, to successfully manage the transition. a. true b. false
To properly manage the changeover when changes are suggested in a business, managers need to take a holistic viewpoint of the company and the particular project that will be changed. This assertion is accurate.
What is meant by "organizational change"?Management is a systematic approach to managing the shift or conversion of an organization's goals, processes, or technology. The aim of change management is to develop strategies for creating change, providing leadership, and helping children adapt to change.
Two instances of managing change include adopting a solitary new tech or revamping the full digital transformation. business acquisitions and acquisitions. a change in the group led or strategy. responding to the market.
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economics is the study of how people: a. vote for political leaders. b. develop value systems. c. make choices to produce and consume goods and services. d. establish social institutions that maximize well-being.
which of the following best describes recent job growth in the service sector? select one: a. the service sector has generated almost all new jobs in the american economy since the mid-1980s, but the rate of job growth in services has slowed in recent years. b. jobs in the service sector have increased slowly over the past decade, but most new jobs are created in the manufacturing industries. c. employment in the service sector has declined in recent years, and this decline is expected to continue. d. there has been little change in the number of jobs in the service sector in recent years; however, employment is expected to increase rapidly.
(C) "Recently, there has been a decline in employment in the service sector, and it is expected that this trend will continue" best describes the recent job growth in the service sector.
What is the service sector?The third layer of the three-sector economy is the service sector, commonly referred to as the tertiary sector.
This industry produces maintenance and repairs, training, or consultancy instead of products.
Everything else falls under the category of service industries, which also includes banking, communications, wholesale and retail trade, all professional services like engineering, computer software development, and medicine, nonprofit economic activity, all consumer services, and all governmental services, such as defense and justice administration.
Employment in the service industry has decreased recently, and it is anticipated that this loss will continue.
The subset of the service-producing sector of the economy that provides services to other businesses and to individuals is known as the services industry division.
Therefore, (C) "recently, there has been a decline in employment in the service sector, and it is expected that this trend will continue" best describes the recent job growth in the service sector.
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the last dividend paid by klein company was $1.00. klein's growth rate is expected to be a constant 15 percent for 2 years, after which dividends are expected to grow at a rate of 5.5 percent forever. klein's required rate of return on equity (rs) is 12 percent. what is the current price of klein's common stock? group of answer choices $5.72 $20.19 $12.46 $19.19
Klein's growth price is expected to be a constant 5 percent for two years, after which dividends are predicted to develop at a charge of 10 percent forever. Klein's required rate of return on equity (rs) is 12 percent.
What is a Dividend?A dividend is a share of earnings and retained profits that a corporation can pay out to its shareholders and owners. When a business enterprise generates a profit and accumulates retained earnings, those earnings can be both reinvested in the enterprise or paid out to shareholders as a dividend.
An instance of a dividend is cash paid out to shareholders out of profits. They are commonly paid quarterly. For example, AT&T has been making such distributions for numerous years, with its 2021 third-quarter issue set at $2.08 per share.
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https://brainly.com/question/25845157#SPJ4Which action is appropriate for an organization to consider when integrating a new
application or platform that deals with sensitive information?
• Build all applications in the same programming language to enhance security.
• include security specialists at the beginning and throughout the process
• follow only proprietary best practices when designing an application to mitigate threats
• copy the best practices of the other organizations and implement them without changes
The solution entails (B) integrating a new platform or application that works with sensitive information. The primary stage is to review.
Appropriate action when integrating a new platform:The first step in integrating a new utility or platform that deals with sensitive data is to review everything.
The next step is for the developers to identify critical areas of applications handling sensitive data using risk modeling, which is used to map information flow and identify critical areas of the software's infrastructure that need extra security attention.
The next step will involve analyzing the applicant's layout, which is essential to keep the application's business purpose front and center for analysis and future guidance.
Finally, frequent security tests of all critical components and controls must be planned in order to guarantee that a robust security posture was enabled.
Therefore, the solution entails (B) integrating a new platform or application that works with sensitive information. The primary stage is to review.
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Correct question:
Which action is appropriate for an organization to consider when integrating a new application or platform that deals with sensitive information?
A. Build all applications in the same programming language to enhance security.
B. include security specialists at the beginning and throughout the process
C. follow only proprietary best practices when designing an application to mitigate threats
D. copy the best practices of the other organizations and implement them without changes
stakeholders have unique perspectives and expertise, which commanders should leverage to gain a more complete understanding the problem to be solved and actions required to solve it. this can be summarized as which best practice?
Incorporate stakeholder perspectives through collaborative decision-making for a more holistic approach.
Why stakeholders are important?Stakeholders are important as they are essential to the success of a business. They provide financial backing, resources, influence, and guidance that can help a business grow and succeed.
Stakeholders can also provide valuable insight into the needs and wants of customers, allowing the business to better meet customer demands. Additionally, stakeholders can provide valuable input on strategies, objectives, and operations, helping to ensure that the business is on the right track and making the right decisions.
Stakeholders are also important for creating trust with the public, as they have a vested interest in the success of the business. Without stakeholders, businesses may struggle to find the resources and support necessary to move forward. As such, stakeholders are an essential part of any successful business.
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according to this article, why might regulators and society be concerned about disney purchasing fox?
According to the article, the regulators and the society be concerned about Disney purchasing as the Disney and fox both are the major producer of the movies where as their deal is said to have reduced a number of movies.
The Disney-Fox merger was prompted by both the companies who were wanting more leverage over other cable also the internet-service providers. The Walt Disney Co. is seen to beeacquiring most of the assets of 21st Century Fox for $52.4 billion in stock,
However, also creating a content behemoth that will have the power to reshape the sports and entertainment landscapes. Thus, their combined heft will now give them even more leverage over cable companie. Thus, the. Thus, the regulators and the society will be concerned about Disney purchasing.
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Which of the following steps in the ethical decision-making process involves devising an accurate problem definition
Giving an actual definition of all the problems is the step that is more accurately used in ethical decision-making process, and also involves problem definition. Therefore, the option C holds true.
The practice of decision-making is a highly ethical process, when it comes to maintenance and management of the business functions in a highly professional environment. Moreover, it is also true to be mentioning that decision-making must be based on the fact the accurate information is used to define the difficulties that an organization has.
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Complete question
Which of the following steps in the ethical decision-making process involves devising an accurate problem definition?
A. Selecting the best choice
B. Listing all alternatives and the consequences
C. Defining the problem
D. Evaluating your decision
we have covered three different measures estimating the cost of common stock from reinvested earnings (not newly issued stock): the capm method, the dividend growth method, and the bond-yield-plus-risk-premium method. it is fair to state that only the capm method always provides an accurate and reliable estimate. true or false? group of answer choices true false
False The CAPM approach is not the only one that consistently yields a precise and trustworthy estimate. The three approaches use a three-fold approach to the same problem.
The techniques have been shown to offer investors some guidance despite their specific flaws. The CAPM's utilisation of historical data is a weakness. The dividend growth approach only works for companies that pay dividends, hence it cannot be used for all businesses. Finally, the numerous unsupported assumptions that underlie the bond-yield plus risk premium technique are a drawback.
Due to the beta's instability and cyclical variations, it is challenging to estimate, hence its assumptions have certain limits. It is also challenging to choose the appropriate risk-free rate to incorporate into the computation.
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the ratio of $x 2$ to $2x 2$ is equal to the ratio of $4x 3$ to $7x 3$. what is the product of all real $x$ which satisfy this statement?
Ratio the demonstrated remainder of two numerical articulations.
We can start solving this problem by using the information provided in the statement:
The ratio of $x^2$ to $2x^2$ is equal to the ratio of $4x^3$ to $7x^3$.
This means:
$\frac{x^2}{2x^2} = \frac{4x^3}{7x^3} \Right arrow \frac{x^2}{2x^2} = \frac{4}{7}$
We can divide both sides by $2x^2$:
$\frac{1}{2} = \frac{4}{7}$
Then we can cross-multiply to get:
$7 = 8$
Which is a contradiction. Therefore, there are no real values of x that satisfy the statement.
The product of all real x that satisfy this statement is equal to zero, which is the product of no numbers.
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ethics and ethical behaviors are the foundation of the accounting profession because investors, creditors, and other stakeholders must trust the opinions and judgements of whom?
According to ethical standards, accountants must abide by the rules and laws that control their areas of practise and jurisdiction.
What is moral conduct?A recent area of social science inquiry called behavioural ethics aims to comprehend how people actually act when faced with moral conundrums. It alludes to conduct that is evaluated in accordance with accepted social norms.Honesty, fairness, and equity in interpersonal, professional, and academic relationships as well as in research and scholarly pursuits are characteristics of ethical behaviour. The rights, diversity, and dignity of both individuals and groups of people are respected in ethical behaviour.Following corporate policies, communicating clearly, accepting responsibility, being accountable, acting professionally, and having faith in and respect for your coworkers.To learn more about ethical behaviors refer: https://brainly.com/question/19373915
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Ethical are the foundation of the accounting profession because investors, creditors, and other stakeholders.
What is Ethical?Edward Freeman popularized the stakeholder theory, a perspective in business ethics that contends that a company's managers have an ethical duty to pursue jointly or to balance the interests of its stakeholders in the course of its business.Ethical investing is a strategy where an investor chooses investments based on a personal ethical code. Ethical investing strives to support industries making a positive impact, such as sustainable energy, and create an investment return.To learn about Ethics https://brainly.com/question/2222369
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southwest airlines hires people who are fun-loving and outgoing, who enjoy interacting with other people because putting fun into air travel is an essential ingredient of the company's culture. from a marketing perspective, this is an example of
The idea that every employee should have a marketing orientation, making them all accountable for ensuring customer pleasure.
What is marketing orientation?Decision-making perspectives, market intelligence perspectives, perspectives on culturally based behavior, strategic perspectives, and perspectives on customer orientation are all examples of market orientation perspectives. An approach to business known as "market orientation" places a strong emphasis on figuring out what consumers want and need, then developing goods and services to meet those demands. To successfully attract, retain, and expand your customer base, it is important to communicate the advantages of your product or service to your target demographic. Your marketing objectives therefore need to be related to the precise business goals that your organization wishes to accomplish.To learn more about marketing orientation refer to:
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If the government cuts taxes by 10 billion dollars and cuts spending by the same amount, rgdp will a. decrease by $10 billion.b. increase by $10 billion.c. remain the same.d. increase by some amount less than $10 billion.e. decrease by some amount less than $10 billion.
If the government cuts taxes by 10 billion dollars and cuts spending by the same amount, rgdp will d. increase by some amount less than $10 billion
If the government implements a plan to cut taxes and spending by a combined total of 10 billion dollars, the resulting change in real gross domestic product (rgdp) will be less than the amount that was cut.
This is due to the fact that reducing the amount of money circulating in the economy results in a decreased level of economic activity, which reduces the overall growth rate. It is important to note, however, that the exact amount of growth that will be lost as a result of this policy is difficult to predict.
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kyle signed a purchase agreement for an arizona timeshare. he soon regretted his decision and decided to rescind the contract. assuming the contract includes the minimum cancellation period required by state law, within how many days of signing may kyle cancel to avoid a penalty?
Both events have to agree on the fee before the purchase agreement is signed. Furthermore, terms such as earnest money, escrow company, down payment, financing, warranties and contingencies, and the closing date will be outlined in the contract.
What is the Arizona law governing timeshares?Arizona's Timeshare Owners' Association and Management Act governs timeshare transactions in the state, inclusive of foreclosures and a buyer's proper to cancel a purchase
There are two one of a kind types of timeshare contracts you can purchase: a deeded possession and a Right To Use timeshare. With a deeded timeshare, you very own an actual fraction of the property through a deed. Right To Use (RTU) gives you the right to vacation at the property.
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https://brainly.com/question/29357357#SPJ41. Most of the research in OB has been concerned with three attitudes: job satisfaction, job involvement, and organizational commitment. Explain the difference between these attitudes
Job satisfaction refers to the level of contentment employees feel with their job. Job involvement refers to the degree to which one identifies psychologically with work and organizational commitment refers to level of engagement a person feel toward their individual jobs.
Organizational commitment and job satisfaction are key elements for a successful and productive workplace. A company should be committed to creating a supportive and inclusive work environment that fosters growth and innovation.
At the same time, it's essential for employees to feel a sense of satisfaction in their job roles, which includes feeling valued and respected, being compensated fairly, and having meaningful opportunities for development.
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you receive an e-mail from a reputable employer asking for names and addresses for students with a gpa of 3.0 or better. they have good job information to offer. can you help students get jobs by giving out that information.
All learners, even those pursuing online and distance learning, must adhere to this. In violation of FERPA, student identification numbers are deemed to be personally identifiable information. Furthermore, it is against FERPA policy to send grades by email.
What Is emailing grades A FERPA violation?The Family Educational Rights and Privacy Act of 1974 (FERPA) stipulates certain rights for students in relation to their educational records, and CSULB complies with this law. Student privacy is safeguarded by the Family Educational Rights and Privacy Act (FERPA), sometimes referred to as the "Buckley Amendment." The term "educational records" refers to a variety of documents, including grades, transcripts, class schedules, graded assignments, student correspondence, advising records, and other documents containing personally identifiable information.For university business only, authorized faculty and staff are given access to student records and other private information.Infractions of the FERPA and their effects. Rooker claims that FERPA infractions might range from unlawfully revealing information to denying students access to their educational records. Institutions that disclose information without consent or that fail to comply with a written consent exception are major ones, according to this statement.To Learn more About FERPA policy refer To:
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in 2022, linkedin introduced which two new ways for brands to grow and strengthen their communities?
LinkedIn unveiled two new strategies in 2022 to help businesses and pages expand and enhance their communities: articles for pages and newsletters for companies.
The largest professional network on the internet is called LinkedIn. LinkedIn can help you locate the ideal job or internship, establish and deepen professional connections, and get the knowledge you need to further your career. LinkedIn's goal is to connect professionals worldwide in order to increase their productivity and success. We who we are? On May 5, 2003, co-founder Reid Hoffman formally established LinkedIn, which had its origins in Hoffman's living room in 2002. A robust job search feature on LinkedIn may locate jobs all across the world. Then, you may filter these outcomes by business, amount of expertise, and other criteria.
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how would an appraiser be able to adjust for the size of the property using the sales comparison approach?
The amount that a specific characteristic appears to increase or decrease the price of the comparable property is added or subtracted from the known prices, respectively.
How is the sales comparison method adjusted?A mechanism must be utilized to modify the pricing of sold properties, or comparables, because no two properties are precisely same. The amount that a specific characteristic appears to increase or decrease the price of the comparable property is added or subtracted from the known prices, respectively.Using sales information from comparable properties, the sales comparison valuation method in real estate establishes a property's market worth. The appraiser should base their estimate of the current worth of a property on at least three recently sold and comparable properties.To learn more about comparable property refer to:
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______ pricing tactics can lead to price confusion, where customers have difficulty discerning what they are actually paying because they have been misled by price promotions.- deceptive
Deceptive pricing tactics can lead to price confusion, where customers have difficulty discerning what they are actually paying as they have been misled by price promotions.
Deceptive pricing strategies, like employing fictitious sale prices or presenting high regular costs adjacent to discounted prices, can make it challenging for customers to assess the genuine worth of a product. Customers may overpay for goods as a result, or they may feel duped and frustrated.
For instance: False reference pricing refers to the practice of using a higher price as a benchmark to artificially inflate the appeal of a sale price that never existed. Customers should be aware of these strategies and carefully compare prices from various sellers to prevent price misunderstanding. In order to comprehend the terms and conditions of offered offers and promotions, they need also read the fine print.
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the most important element of the marketing mix is the good or service being offered and the values associated with it, including the way the product is designed and classified, positioned, branded, and packaged. this is known as the element.
the most important element of the marketing mix is the good or service being offered and the values associated with it, including the way the product is designed and classified, positioned, branded, and packaged. this is known as the element demographic.
What is marketing?Discovering, creating, and providing value to meet a target market's demands for goods and services is the practice of marketing. Choosing a target market, selecting specific traits or themes to highlight in advertising, launching marketing campaigns, attending trade shows and public events, creating packaging and products that appeal to consumers, and trying to define the terms of the sale, such as the purchase cost, discounted rates, warranties, and return policies are some examples of what may be involved. Marketing is the responsibility of the seller, who is frequently a retailer or manufacturer. It is one of the core components of company management and trading. Directly addressing clients or other businesses (B2B marketing) are two options for marketers (B2C marketing). Several factors, such as the marketing team's mindset, are important independent of the target demographic.
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There is only one Area Compliance Program Director. True or false
It is TRUE that there is just one Area Compliance Program Director at this time.
What is Area Compliance, Program Director?The Area Compliance Program Directors are in charge of assisting the Compliance Officer in putting the policies, practices, and guidelines created to ensure compliance with this CIA's requirements and those of the Federal Health Care Program into effect.
They are also in charge of overseeing daily compliance.
There is just one Area Compliance Program Directo.
A program director, sometimes known as a project director, is in charge of managing every aspect of an organizational endeavor, including hiring staff, controlling the budget, and recruiting participants.
Therefore, it is TRUE that there is just one Area Compliance Program Director at this time.
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Deb and Eve are partners in Foundations, a construction outfit. Deb manages the business. For this service, unless the partnership agreement states otherwise, she is entitled to pay in proportion to her a) effect on the business. b) effort. c) capital contribution. d) none of the choices
Correct answer is D.
A partnership settlement is a felony file that dictates how a small for-profit business will function below two or greater people.
The agreement lays out the duties of each partner in the business, how a whole lot of the enterprise each partner owns, and how lots profit and loss each accomplice is accountable for.
What is partnership state its features?A partnership is a form of business the place a formal settlement between two or extra human beings is made who agree to be the co-owners, distribute obligations for walking an agency and share the earnings or losses that the enterprise generates.
What is partnership kingdom any two rules?In a time-honored partnership, all parties share felony and economic legal responsibility equally. The men and women are personally responsible for the debts the partnership takes on. Profits are also shared equally. The specifics of profit sharing will almost definitely be laid out in writing in a partnership agreement.
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https://brainly.com/question/994016#SPJ4the movie company has been in business for 5 months and wants to estimate its variable cost of tickets sold. using the data from this chart and the high-low method, what is the variable cost for the movie company? (round the cost to 2 decimal places.)
The movie studio's variable cost per ticket is $4.80.
What is a variable cost and an illustration?Costs that vary as the quantity increases are known as variable costs. Raw materials, item labor, competitively priced, commissions, shipping expenses, packing costs, and credit card fees are a few examples of variable costs. The Cost of Goods Sold is the name given to the fluctuating costs of production in some accounting statements.
Describe a variable example.A property that can be evaluated and given varied values is known as a variable. Variables include things like height, age, income, region of birth, school grades, and kind of dwelling.
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miracle consulting corporation has its headquarters in chicago and operates from three branch offices in portland, dallas, and miami. two of the company's activity cost pools are general service and research service. these costs are allocated to the three branch offices using an activity-based costing system. information for next year follows: activity cost poolactivity measureestimated cost general service% of time devoted to branch$ 700,000 research servicecomputer time$ 140,000 estimated branch data for next year is as follows: % of timecomputer time portland30 0,000minutes dallas600,000minutes miami10p,000minutes how much of the headquarters cost allocation should the dallas office expect to receive next year?
To determine how much of the headquarters cost allocation the Dallas office should expect to receive next year, we need to allocate the costs of the general service and research service activity cost pools using the activity measures and the estimated branch data.
For the general service activity cost pool:
$700,000 (total cost) x 600,000 (minutes of computer time used by Dallas) / 1,940,000 (total minutes of computer time used by all branches) = $236,410
For the research service activity cost pool:
$140,000 (total cost) x 600,000 (minutes of computer time used by Dallas) / 1,940,000 (total minutes of computer time used by all branches) = $46,410
Therefore, the Dallas office should expect to receive a total of $236,410 + $46,410 = $282,820 for the headquarters cost allocation next year.
What involves in cost allocation?
The term cost allocation refers to the allocation of costs with respect to the cost driver, which can be done easily.
Furthermore, it was used to compute the allocation rate, which was then multiplied by the weightage of the cost driver.
In this case, the cost driver means
The cost of an inspection is determined by the number of inspections performed. The cost, like setup, is determined by the number of setups required.
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