Pierceall Corporation Is Conducting a Time-Driven Activity-Based Costing Study in Its

question 24

Multiple Choice

Pierceall Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that study: The cost per minute of the resource supplied is $0.42. On the Customer Cost Analysis report in time-driven activity-based costing, the time-driven activity rate for Routing Calls would be closest to:

• A) $0.42 per call routed
• B) $6.72 per call routed
• C) $3.63 per call routed
• D) $16.00 per call routed

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Definitions:

Per-unit Cost

The cost associated with producing or acquiring a single unit of product, including both fixed and variable costs.

Operating Income

Operating Income is a measure of a company's profit that comes from its regular business operations, excluding non-operating income and expenses.

Units Sold

The total number of units of a product sold within a specific period, reflecting the volume of business activity.

Variable Cost

An expense that fluctuates with the level of output or sales volume, such as the cost of raw materials used in a product's manufacture.