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Sovereign Credit Checks produces two styles of credit reports: Individual and Corporate. The difference between the two is the amount of background information and data collection required. The Corporate report uses more skilled personnel because additional checking and data are required. The relevant figures for the year just completed follow: Total support service costs to be allocated are $3,200,000.

-Which cost-allocation based would the manager of the Individual Department prefer the most?
A) Data purchased
B) Research hours
C) Interview hours
D) Number of reports

Question

Use the following to answer questions:
Sovereign Credit Checks produces two styles of credit reports: Individual and Corporate. The difference between the two is the amount of background information and data collection required. The Corporate report uses more skilled personnel because additional checking and data are required. The relevant figures for the year just completed follow: Total support service costs to be allocated are $3,200,000.
 
-Which cost-allocation based would the manager of the Individual Department prefer the most?
A) Data purchased 
B) Research hours 
C) Interview hours 
D) Number of reports

Quizplus · Accepted Answer

The manager of the Individual Department would likely prefer "Interview hours" as a cost-allocation base because it may more accurately reflect the department's activities and resource usage, potentially leading to a more favorable allocation of costs.

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