If a Budgeted Activity Base Is Used as the Base

question 22

Multiple Choice

If a budgeted activity base is used as the base in cost allocation, each department's cost allocation will be predictable, and not influenced by the:

• A)Actual total cost.
• B)Change in activity.
• C)Variations from budget.
• D)Errors in calculations.
• E)Actual usage in other departments.

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Definitions:

Ratifies

The act of officially confirming or endorsing a decision, making it formally valid.

Adoption

In corporation law, a corporation’s acceptance of a preincorporation contract by action of its board of directors, by which the corporation becomes liable on the contract.

Novation

The act of replacing one obligation with a new one, extinguishing the original obligation.

Ratification

Ratification is the formal approval or confirmation of an action or agreement, often used in the context of treaties, contracts, or laws.