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San Diego State University Operations And Supply Chain Management Assignment Help - Basis risk

Question - The Ad Guys Inc. provides advertising services for clients across the nation. The Ad Guys is presently working on four projects, each for a different client. The Ad Guys accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 50% of media purchases. On June 1, the four advertising projects had the following accumulated costs: June 1 Balances Clinton Bank…………………. $80,000 Pryor Airlines………………….. 24,000 O’ Ryan Hotels……………… ...Read More

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