Question: L because this is a simpler approach than using one cost alloation base D) because there is more than one way to allocate overhead Answer
L because this is a simpler approach than using one cost alloation base D) because there is more than one way to allocate overhead Answer the following questions using the information below Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways Car Rental Number of Vehicles in fleet Number of employees Sales 850 125 $750,000 430 75 $375,000 25) If the facility lease expense of $384,000is located on the bas expense of $384,000 is allocated on the basis of vehicles in the fleet, the amount allocated to the Truck Rental Department would be A) s123,000 B) $129,000 C) 125,000 D) $127,000 26) Financial accounting A) focuses on the future and B) is prepared for the use of department heads and other employees C) must comply with GAAP (generally accepted accounting principles) D) is the process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization d includes activities such as preparing next year's operating budget 27) Which of the following statements is true? A) Over the short run all costs have cost drivers. B) Fixed costs have cost drivers over the short run. C) There is a cause-and-effect relationship between the cost driver and the amount of cost. D) Volume of production is a cost driver of distribution costs
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