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Stark Corporation Has Two Departments, Car Rental and Truck Rental

Question 112

Multiple Choice

Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.
Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways. If advertising expense of $456,000 is allocated on the basis of sales, the cost per cost driver rate would be ________. A) $0.60 B) $1.20 C) $0.40 D) $0.43
If advertising expense of $456,000 is allocated on the basis of sales, the cost per cost driver rate would be ________.


A) $0.60
B) $1.20
C) $0.40
D) $0.43

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