Which of the Following Activity Cost Pools and Activity Measures

question 34

Multiple Choice

Which of the following activity cost pools and activity measures likely has the lowest degree of correlation? $\begin{array}{|l|l|l|l|}\hline & {\text { Activity Cost Pool }} & &{\text { Activity Measure }} \\\hline 1 & \text { Order department } && \text { Number of orders processed } \\\hline 2 & \text { Sales management } &&\text { Time spent by managers in each sales } \\&&&\text { territory }\\\hline 3 & \text { Accounts receivable processing } && \text { Number of customers } \\\hline 4 & \text { Catering } & &\text { Numbers of meals served } \\\hline 5 & \text { Employee travel to job sites (sites } & &\text { Number of employees } \\&\text { are within } 100 \text {-mile radius of }\\&\text { company headquarters) }\\\hline\end{array}$

• A)1.
• B)2.
• C)3.
• D)4.
• E)5.

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Definitions:

Cost of Living Adjustment

An increase in income or salary to counteract inflation, helping maintain employees' purchasing power.

Collective Agreements

Contracts made between employers and a group of employees, often represented by a union, that establish terms of employment, working conditions, and wages.

Collective Bargaining

A negotiation process between employers and a group of employees aimed at establishing agreements regarding wages, working conditions, and other employment terms.

External Factor

Influences, trends, or variables originating outside of an organization that can affect its performance and decision-making.