All of the Following Are the Examples of Activities (And

question 53

Multiple Choice

All of the following are the examples of Activities (and activity drivers) EXCEPT:

• A) Renewal applications (number of applications received).
• B) Facilities (cost per square foot of space allocated to licensing function, times percent of renewals received).
• C) Applications corrected (number of applications corrected).
• D) Determine eligibility (number of applications reviewed for eligibility).

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Definitions:

Operating Expense

Costs necessary for maintaining the day-to-day operations of a business, excluding costs associated with the production of goods or services.

Net Price Method

A pricing strategy that applies discounts and allowances to the gross price to determine the final sale price.

Cash Discounts

Cash discounts are reductions in the price of goods or services offered to buyers as an incentive for early payment.

Contra-Revenue Account

An account that is deducted from gross revenue to determine net revenue, such as sales returns, allowances, and discounts.