Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham. Brandon uses an activ
ity-based costing system. The Atlanta office has its costs for Administration and Legal allocated to the two branch offices. Brandon has provided the following information: Activity Cost Pool Cost Driver Costs Administration % of time devoted to branch $700,000 Legal Hours spent on legal research $138,000 % of time devoted to branch Hours spend on legal research Nashville 80% 18,000 Birmingham 20% 6,000 How much of Atlanta’s cost will be allocated to Nashville? $628,500 $663,500 $670,400 None of these answer choices are correct
The Laffer Curve was developed by Arthur Laffer and it depicts the relationship that exists between the tax rates and tax revenue.which the government collects.
The curve is typically used to show that there can be an increase in the total revenue for an economy when the tax rate is reduced.
