A professional services firm has been analysing the cost of collecting management information by using its employees' hourly charge-out rates to estimate the costs of different activities The firm has calculated that the following costs have been incurred during the last month: $ Staff completing timesheets 5,000 3,000 Managers analysing costs incurred on assignments compared to fees agreed with clients Credit control team updating the receivables ledgers to write off bad debts 500 Using the information provided, what are the firm's direct data capture costs for the last month? $500 $5,000 $8,000 $8,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A professional services firm has been analysing the cost of collecting management information by using its employees' hourly charge-out rates to estimate the costs of different activities.
The firm has calculated that the following costs have been incurred during the last month:
Staff completing timesheets
Managers analysing costs incurred on assignments compared to fees agreed with clients
Credit control team updating the receivables ledgers to write off bad debts
5,000
3,000
500
Using the information provided, what are the firm's direct data capture costs for the last month?
- $500
$5,000
$8,000
$8,500
Transcribed Image Text:A professional services firm has been analysing the cost of collecting management information by using its employees' hourly charge-out rates to estimate the costs of different activities. The firm has calculated that the following costs have been incurred during the last month: Staff completing timesheets Managers analysing costs incurred on assignments compared to fees agreed with clients Credit control team updating the receivables ledgers to write off bad debts 5,000 3,000 500 Using the information provided, what are the firm's direct data capture costs for the last month? - $500 $5,000 $8,000 $8,500
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