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Advertising Expense Totaled $40,000

Question 14

Multiple Choice

Advertising expense totaled $40,000.If indirect advertising costs are allocated based on gross sales per department,what amount would be allocated to the Jewelry department if $10,000 of advertising is indirect?
Gross Sales: Jewelry,$60,000;Glassware,$50,000;Watches,$40,000.


A) $16,000
B) $4,000
C) $20,000
D) $3,333

Correct Answer:

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