According to U

question 64

Multiple Choice

According to U.S.GAAP,which of the following provides the most reliable measure for fair value measurement?

• A) Observable market data serving as inputs into estimates into present value-based measurements such as foreign exchange rates.
• B) Quoted market prices of identical assets or liabilities in inactive markets
• C) Observable quoted market prices in active markets for identical assets or liabilities
• D) Unobservable inputs used by the reporting entity when modeling how the market would determine the fair value of the asset or liability in question

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Definitions:

Allocation Base

A criterion or measure, such as direct labor hours or machine hours, used for allocating costs among multiple cost objects.

Allocation Base

A criterion or standard used to allocate costs among different cost objects, like departments or products.

Overhead Rate

is a calculation that determines how much of overhead cost should be allocated to each unit of production or service, commonly based on direct labor hours, machine hours, or other activity drivers.

Machine Hours

A measure of production time, calculated as the total hours that a machine is operated during a specific period.