214. CSO: 1C3c LOS: 1C3h
Jones Tax Company has three divisions - Compliance, Tax Planning, and Financial
Consulting. Based on the divisional data presented below, which one of the allocation
bases for common company expenses would likely have the least negative behavioral
impact on the Financial Consulting Division manager?
Compliance Tax Planning Financial Consulting
79
Revenues $4,500,000 $6,000,000 $4,500,000
Variable expenses 1,500,000 3,750,000 2,250,000
No. of employees 68 76 56
a. Revenues.
b. Contribution margin.
c. Equal sharing.
d. Number of employees.
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