What Will Be the Effect When a Firm Implements Activity-Based

question 6

Multiple Choice

What will be the effect when a firm implements activity-based procedures for home office expenses?

• A)They will allocate all home office expenses on the basis of sales revenues.
• B)They will allocate all home office expenses to homogeneous cost pools.
• C)They will allocate the costs in a pool using a predetermined rate per unit of activity.
• D)They will allocate the costs in a pool using the actual rate per unit of activity.

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Definitions:

Apathy

A lack of feeling, emotion, interest, or concern about something.

Anxiety Disorder

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one’s daily activities.

Manic-depressive

Manic-depressive is an older term for bipolar disorder, a mental health condition characterized by extreme mood swings including emotional highs (mania or hypomania) and lows (depression).

Affective Disorder

A group of mood disorders in which a person's emotional state or mood is inconsistent with their circumstances and interferes with their ability to function.