(Appendix 7A) Pierceall Corporation Is Conducting a Time-Driven Activity-Based Costing

question 96

Multiple Choice

(Appendix 7A) Pierceall Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that study:
The cost per minute of the resource supplied is $0.42.
-On the Customer Cost Analysis report in time-driven activity-based costing,the time-driven activity rate for Preparing Change Orders would be closest to:

• A) $0.42 per change order prepared
• B) $1.11 per change order prepared
• C) $15.96 per change order prepared
• D) $38.00 per change order prepared

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Definitions:

GDP Deflator

An index reflecting the price levels for all newly produced, domestic, final goods and services within a country.

Per Capita Real GDP

Real GDP divided by population.

Deflation

A drop in the average cost of goods and services, typically connected with a boost in the purchasing power of money.

Real GDP

An economic metric that measures the value of all goods and services produced by a country in a year, adjusted for inflation, reflecting the real growth.