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Mr. Gregory White
Mr. Gregory White, Master's Degree
Category: Multiple Problems
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Experience:  M.A., M.S. Education / Educational Administration
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According to the cost allocation methods

Resolved Question:

According to the cost allocation methods used in the company’s accounting system and described in the Help section for the Operations Report for any of the four geographic regions, your company's administrative expenses are

1.allocated equally to each of the four geographical regions.

2.allocated to each of the four geographic regions based on each region’s percentage contribution to total company wide revenues.

3.allocated to each of the four geographic regions according to their respective percentages of total cameras sold and then allocated between sales of entry-level cameras and multi-featured cameras within each region according to their respective percentages of total cameras sold.

4.allocated between entry-level cameras and multi-featured cameras according to their respective percentages of total company wide revenues.

5.None of the above accurately describe the manner in which the company’s administrative expenses are allocated.

Submitted: 5 years ago.
Category: Multiple Problems
Expert:  Mr. Gregory White replied 5 years ago.

The answer is:

"allocated to each of the four geographic regions according to their respective percentages of total cameras sold and then allocated between sales of entry-level cameras and multi-featured cameras within each region according to their respective percentages of total cameras sold. "

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