Which of the Following Quantities Is an Example of an Activity

question 26

Multiple Choice

Which of the following quantities is an example of an activity cost driver in activity-based costing?

• A)number of direct labour hours
• B)number of labour transactions
• C)number of machine hours
• D)all of the above

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Definitions:

Long-Run Equilibrium

A state in a market where all resources are optimally allocated and economic forces are balanced, with no tendency for change until external conditions change.

Perfect Competition

A market structure characterized by many sellers and buyers, homogeneous products, and free entry and exit, resulting in price takers.

Economic Profit

The difference between a business's total revenue and its total costs, including both explicit and implicit costs.

Long-Run Supply Curve

A graphical representation showing the relationship between price and quantity supplied over time, factoring in adjustments in factors of production.