Trips to Remember, Inc. provides vacation trips to various locations around the world. The company's
Headquarters are located in Meadows Place, TX. The headquarters provide two main services to the four tourist locales: accounting and customer services (reservations).
Budget and actual data for each of the four tourist locations are as follows:
The Accounting Services Department actually incurred $11,000 in accounting costs for May 2012. The Reservation Department incurred $23,000 in actual costs, of which $20,000 were traceable to the locations. Which is the best method to allocate traceable accounting costs?

Question

Trips to Remember, Inc. provides vacation trips to various locations around the world. The company's
Headquarters are located in Meadows Place, TX. The headquarters provide two main services to the four tourist locales: accounting and customer services (reservations).
Budget and actual data for each of the four tourist locations are as follows:
 The Accounting Services Department actually incurred $11,000 in accounting costs for May 2012. The Reservation Department incurred $23,000 in actual costs, of which $20,000 were traceable to the locations. Which is the best method to allocate traceable accounting costs?

Quizplus · Accepted Answer

The Answer of Trips to Remember, Inc. provides vacation trips to various locations around the world. The company's
Headquarters are located in Meadows Place, TX. The headquarters provide two main services to the four tourist locales: accounting and customer services (reservations).
Budget and actual data for each of the four tourist locations are as follows:
 The Accounting Services Department actually incurred $11,000 in accounting costs for May 2012. The Reservation Department incurred $23,000 in actual costs, of which $20,000 were traceable to the locations. Which is the best method to allocate traceable accounting costs?