________ Is Considered While Choosing a Cost Allocation Base for Activity

question 6

Multiple Choice

________ is considered while choosing a cost allocation base for activity costs in ABC costing.

• A) The marketing strategy of the products being produced
• B) The product sales price
• C) The availability of reliable data and metrics
• D) The number of employees in direct labor

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Definitions:

Organizational Constraints

Factors within an organization that limit or restrict its operations, strategies, or ability to achieve goals.

Career Planning

The process whereby individuals set career goals and identify the means to achieve them, often with organizational support.

Job Analyses

The process of studying and collecting information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.

Reasonable Restrictive Covenants

Legal agreements used by employers to limit the ability of employees to engage in certain activities that might be detrimental to the business, deemed reasonable in scope, geography, and duration.