Question

State University's College of Business is divided into three departments, accounting, marketing, and management. Relevant information for each department is provided below: Accounting Marketing Cost Driver Management Number of students 700 400 200 Number of classes per semester 32 18 14 Number of faculty 10 12 5 The Dean of the College of Business is trying to assign funds from the operating budget to the three departments. Assuming that the chair of each department is trying to attain the highest funding possible for his/her department, which of the following most accurately describes the allocation base that each chair will favor? Multiple Choice The chair of the Management department will want to use the number of classes while the chair of the Marketing department will prefer the number of faculty. The chair of the Accounting department and the chair of the Management department will want to use the number of faculty. The chair of the Marketing department will want to use number of students, while the chair of the Accounting department will want to use number of classes per semester The chair of the Accounting department will want to use number of students while the chair of the Management department will want to use number of faculty 20 of 22 о

Answer 1

The correct answer is

The chair of the accounting department will want to use number of students while the chair of the management department will want to use number of facility.

Explanation

If the number of students is used as allocation base, the accounting department will get assigned highest budget so accounting department would want to use number of students and marketing department would like to use number of faculty as the ighest number of faculty is in marketing department, so highest cost will be assigned to marketing department, if number of faculty is used as allocation base.