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

Essay

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: $\begin{array}{|l|r|l|r|}\hline \text { Possible Cost Driver } & \text { BAP } & \text { DSP } & \text { BGS } \\\hline \text { Number of students } & 30 & 40 & 100 \\\hline \text { Budgeted expenses } & \$ 5,500 & \$ 4,000 & \$ 500 \\\hline \begin{array}{l}\text { Number of } \\\text { organizations }\end{array} & 1 & 1 & 1 \\\hline\end{array}$ 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?