Which of the Following Describes How,in ABC,the Activity Allocation Rate

question 136

Multiple Choice

Which of the following describes how,in ABC,the activity allocation rate is computed?

• A)The total estimated activity cost pool is divided by the total estimated activity allocation base.
• B)The total estimated activity allocation base is divided by the total estimated activity cost pool.
• C)The total estimated activity allocation base is multiplied by the total estimated activity cost pool.
• D)You take the total estimated activity allocation base and subtract the total estimated total activity cost pool.

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Definitions:

Sales Tax

A tax imposed by governments on the sale of goods and services, collected by the retailer at the point of sale.

Ad Valorem Tax

A tax based on the assessed value of an item, such as property or goods, typically expressed as a percentage.

California

A diverse and populous state located on the Pacific coast of the United States, known for its significant economic, cultural, and political influence.

Government Revenue

The total income received by the government from taxes and non-tax sources.