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