The IT department allocates indirect costs to user departments on the basis of CPU time at the rate of $2000 per second. For the first quarter, the twoheaviest use departments logged 900 and 1300 seconds, respectively. If the IT indirect budget for the year is $8.0 million, the percentage of this year’s allocation consumed by these departmentsis closest to:a. 32%b. 22.5%c. 55%d. not enough information to determine
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The IT department allocates indirect costs to user departments on the basis of CPU time at the rate of $2000 per second. For the first quarter, the two
heaviest use departments logged 900 and 1300 seconds, respectively. If the IT indirect budget for the year is $8.0 million, the percentage of this year’s allocation consumed by these departments
is closest to:
a. 32%
b. 22.5%
c. 55%
d. not enough information to determine
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