Which One of the Following Describes an Activity Base

question 53

Multiple Choice

Which one of the following describes an activity base?

• A)a denominator used by management based on estimated useful lives of the company's plant assets
• B)a measure which is estimated by management based on prior year's operations
• C)a measure that has a correlation with assigning overhead
• D)a guess by management on a fair method of applying overhead

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Definitions:

Budget Constraint

A budget constraint represents the limitations on the spending choices of consumers based on their income and the prices of goods and services.

DVDs

Digital Versatile Discs, a type of optical storage media used for storing data, including movies, software, and other digital information.

CDs

Compact Discs, a form of digital optical disc data storage, used for storing digital data, including music, software, and data files.

Budget Constraint

The limitation on the purchase of goods and services based on the availability of income and wealth, reflecting the trade-off between different combinations of goods.