The Best Allocation Base Choice for an ABC Cost Pool

question 51

Multiple Choice

The best allocation base choice for an ABC cost pool is a(n) :

• A) Cost driver
• B) Activity dictionary
• C) Allocation rate
• D) Financial measure

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Definitions:

Equity Theory

A theory in social psychology that explains how people strive for fairness and justice in social exchanges or give-and-take relationships, balancing the input they provide with the outcomes they receive.

Job Input

Refers to the various contributions, such as skills, effort, and time, that an employee provides to their job role or task.

Evaluative Tendency

A cognitive bias or predisposition towards assessing or judging situations, individuals, or objects in a particular way.

Emotional Labour

The effort required to manage and express emotions in a way that fulfills the emotional requirements of a job.