Beta Company is preparing its annual profit plan.As part of its analysis of the profitability of its customers,management estimates that the $12,000 for sales support should be assigned to the individual customers from the information given as follows: What is the amount of the sales support costs that should be allocated to Customer A,assuming Beta uses purchases orders to compute activity-based costs?
A)$2,400.
B)$4,000.
C)$8,000.
D)$9,600.

Question

Beta Company is preparing its annual profit plan.As part of its analysis of the profitability of its customers,management estimates that the $12,000 for sales support should be assigned to the individual customers from the information given as follows:  What is the amount of the sales support costs that should be allocated to Customer A,assuming Beta uses purchases orders to compute activity-based costs?
A)$2,400. 
B)$4,000. 
C)$8,000. 
D)$9,600.

Quizplus · Accepted Answer

The Answer of Beta Company is preparing its annual profit plan.As part of its analysis of the profitability of its customers,management estimates that the $12,000 for sales support should be assigned to the individual customers from the information given as follows:  What is the amount of the sales support costs that should be allocated to Customer A,assuming Beta uses purchases orders to compute activity-based costs?
A)$2,400. 
B)$4,000. 
C)$8,000. 
D)$9,600.

Beta Company Is Preparing Its Annual Profit Plan