Potter & Weasley Company Had the Following Activities, Estimated Indirect

question 43

Multiple Choice

Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Potter & Weasley uses activity based costing.
The above activities are used by Departments P and Q as follows:
What is the cost per driver unit for the account inquiry activity?

• A)$1.75
• B)$8.64
• C)$8.00
• D)$32.00

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Definitions:

Tall Versus Flat

A description comparing organizational structures where "tall" refers to many hierarchical levels and "flat" signifies fewer levels and potentially more decentralized decision-making.

Management Hierarchy

The arrangement of authoritative levels within an organization, often depicted as a pyramid, where each level has different levels of responsibility and authority.

Divide Labour

The allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency and productivity.

Index

A statistical measure or indicator that tracks changes in various sectors, such as a stock market index, which measures the performance of a particular section of the stock market.