Assume the Following Sales Data for a Company $$\begin{array} { r r } 2017 & \$ 1,050,000 \\2016 & 950,000 \\2015 & 800,000 \\2014 & 650,000\end{array}$$

question 104

Multiple Choice

Assume the following sales data for a company: $$\begin{array} { r r } 2017 & \$ 1,050,000 \\2016 & 950,000 \\2015 & 800,000 \\2014 & 650,000\end{array}$$ If 2014 is the base year, what is the percentage increase in sales from 2014 to 2016?

• A) 100%
• B) 61.5%
• C) 46.2%
• D) 68.4%

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Definitions:

Activity-based Costing

This accounting methodology allocates indirect costs to specific products or services based on their usage of activities, enhancing accuracy in costing.

Departmental Overhead Rates

The allocation of indirect costs to specific departments based on a predetermined rate, for more accurate cost distribution.

Allocating Overhead Costs

The process of distributing indirect costs to specific cost objects, such as products or departments, to accurately reflect the costs of production.

Product-level Activity

Activities and costs associated with a specific product rather than the business as a whole.