________ Is Considered While Choosing a Cost Allocation Base for Activity

question 26

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
• E)The number of departments

---

Definitions:

Fair Value

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Equity-settled

Transactions in which an entity receives goods or services as consideration for its own equity instruments, such as shares or share options.

AASB 2

An accounting standard that deals with the recognition, measurement, and disclosure of share-based payments.