The College of Business Administration needs to distribute $12,000 received from an anonymous donor and earmarked for three business student organizations,Beta Alpha Psi (BAP),Delta Sigma Pi (DSP),and Beta Gamma Sigma (BGS).Relevant information is provided below:
$$\begin{array} { l r r r }
\text { Possible Cost Driver } & \text { BAP } & \text { DSP } & \text { BGS } \
\text { Nurnber of students } & 30 & 40 & 100 \
\text { Budgeted expenses } & 5 5 , 5 0 0 &\$4,000 &\$ 500 \
\text { Nurnber of orgarizations } & 1 & 1 & 1
\end{array}$$ Assume that each organization wishes to obtain the highest funding possible.
Required:
1)Which cost driver will each organization recommend be used to distribute the funds?
2)Which cost driver would you recommend and why?

Question

The College of Business Administration needs to distribute $12,000 received from an anonymous donor and earmarked for three business student organizations,Beta Alpha Psi (BAP),Delta Sigma Pi (DSP),and Beta Gamma Sigma (BGS).Relevant information is provided below:
 $$\begin{array} { l r r r } 
\text { Possible Cost Driver } & \text { BAP } & \text { DSP } & \text { BGS } \
\text { Nurnber of students } & 30 & 40 & 100 \
\text { Budgeted expenses } & 5 5 , 5 0 0 &\$4,000 &\$  500 \
\text { Nurnber of orgarizations } & 1 & 1 & 1
\end{array}$$ Assume that each organization wishes to obtain the highest funding possible.
Required:
1)Which cost driver will each organization recommend be used to distribute the funds?
2)Which cost driver would you recommend and why?

Quizplus · Accepted Answer

The Answer of The College of Business Administration needs to distribute $12,000 received from an anonymous donor and earmarked for three business student organizations,Beta Alpha Psi (BAP),Delta Sigma Pi (DSP),and Beta Gamma Sigma (BGS).Relevant information is provided below:
 $$\begin{array} { l r r r } 
\text { Possible Cost Driver } & \text { BAP } & \text { DSP } & \text { BGS } \
\text { Nurnber of students } & 30 & 40 & 100 \
\text { Budgeted expenses } & 5 5 , 5 0 0 &\$4,000 &\$  500 \
\text { Nurnber of orgarizations } & 1 & 1 & 1
\end{array}$$ Assume that each organization wishes to obtain the highest funding possible.
Required:
1)Which cost driver will each organization recommend be used to distribute the funds?
2)Which cost driver would you recommend and why?

The College of Business Administration Needs to Distribute $12,000 Received