Respuesta :
To operate and administer a business or industrial enterprise, a number of individuals can create a legal body known as a corporation.
What types of expenses are there?
Various Expenses
Operating. Expense for Goods Sold (COGS) promotion, marketing, and advertising. earnings, benefits, and salaries selling, all-purpose, and managerial (SG&A) insurance and rent. Amortization and depreciation. Other.
Briefing
First question is being answered here:
1. Option (a) is correct
Since advertising expense is to be allocated based on sales, so first we will calculate the total sales as per below:
Total or combined sales of both departments = $528000 + $792000 = $1320000
Now,
Department Y's advertising expense = Total advertising expense / Total sales * Department Y's advertising expense
putting the values above
Department Y's advertising expense = $22200 / $1320000 * $528000
Department Y's advertising expense = $8880
Department Z's advertising expense = Total advertising expense / Total sales * Department Z's advertising expense
putting the values above
Department Z's advertising expense = $22200 / $1320000 * $792000
Department Y's advertising expense = $13320
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