Umbrella Corporation maintains computer equipment and provides consulting services in 10 states and 15 countries. The...

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Accounting

Umbrella Corporation maintains computer equipment and providesconsulting services in 10 states and 15 countries. The corporationhas a fleet of 4 Corporate jets and 3 Helicoptors and employs 6full time pilots who receive salary and benefits. The mostappropriate way to allocate the total cost of the corporate jets,helicopters, and pilots to individual user departments who travelworldwide to provide consulting service to clients would be:
a. number of employees in each department
b. number of trips taken by each department
c. number of miles flown by each department
d. sales revenue generated by each user department.
Comments:
- Can you explain why Answer C would be the correct answer? Iwould appreciate it.
- This is a created example that complies with Chegg's honorcode.

Answer & Explanation Solved by verified expert

3.9 Ratings (640 Votes)

Option c will be the answer Others are not accurate to allocate the cost of jets to the departments Here is why Option c accepts the miles flown by each department Not the numbers of flight Number of flight maybe See Answer

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