How much of the computer system's cost will be allocated to the Business Consulting Division?

Question

Quizplus · Accepted Answer

The allocation of the cost of the computer system to each division will be based on their corresponding percentages of the total company revenue. The revenue of the Business Consulting Division is $350,000/$1,000,000, which is 0.35 or 35%. Therefore, the Business Consulting Division's share of the computer system cost is 35% of $240,000, which is $84,000. Hence, the answer is option C.

How Much of the Computer System's Cost Will Be Allocated