At the Nassau Advertising Agency,partner and staff compensation cost is a key driver of agency overhead.In light of this fact,which of the following is the correct expression to determine the amount of overhead applied to a particular client job?
A) (Budgeted overhead / budgeted compensation) * budgeted compensation cost on the job.
B) (Budgeted overhead / budgeted compensation) * actual compensation cost on the joB.
C) (Budgeted compensation / budgeted overhead) * budgeted compensation cost on the job.
D) (Budgeted compensation / budgeted overhead) * actual compensation cost on the job.
E) None of these,because service providers do not apply overhead to jobs.
Correct Answer:
Verified
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