An Activity Base Is Used to Charge Service Department Expenses

question 76

Multiple Choice

An activity base is used to charge service department expenses. Match each of the following activity bases with the appropriate department (a-h) .
-Number of employees

• A)Purchasing
• B)Payroll Accounting
• C)Human Resources
• D)Maintenance
• E)Information Systems
• F)Marketing
• G)President's Office
• H)Transportation

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Definitions:

Spot-Futures Parity

A theoretical pricing model that suggests the relationship between the spot price of an asset and its corresponding futures price, based on the cost of carry.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Stated

Pertains to information, policies, or conditions that are formally expressed or declared by an authoritative source or document.

Long Hedger

An investor or trader who enters into contracts to purchase a commodity or asset at a future date to protect against price increases.