Given the Following, Calculate the GDS Ratio

question 9

Multiple Choice

Given the following, calculate the GDS ratio.All income and expense items are annual.

• A)28%
• B)41%
• C)44%
• D)52%
• E)63%

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Definitions:

Activity Rates

Are used in activity-based costing to allocate costs to products or services based on the activities required for their production or delivery.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving accuracy in product costing.

Overhead Cost

Expenses related to the day-to-day running of a business that are not directly linked to a specific product or service but are necessary for the business to operate.

Activity Rates

The specific costs associated with particular business activities, measured to allocate resources or assess performance.