Which of the Following Is Formula for Calculating the Activity

question 53

Multiple Choice

Which of the following is formula for calculating the activity rate in an activity-based costing system?

• A)Activity cost pool resources divided by activity driver
• B)Activity driver divided by activity cost pool resources
• C)Activity cost pool resources divided by estimated total cost pool
• D)Estimated cost pool divided by activity cost pool resources

Analyze the impact of intra-entity sales of inventory on consolidated financial statements.

Evaluate the treatment and effects of intra-entity asset transfers other than inventory.

Interpret the effects of intra-entity sales on subsidiary income and dividends.

Calculate consolidated totals for equipment, revenues, cost of goods sold, operating expenses, noncontrolling interest, and retained earnings adjustments.

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Definitions:

Positive Correlation

Positive correlation indicates that as one variable increases, the other variable tends to increase as well, demonstrating a direct relationship between the two variables.

Direct Correlation

A positive correlation where the values of both variables change in the same direction.

Two-tailed Test

A statistical hypothesis test in which the area of rejection is on both ends of the sampling distribution, allowing for the investigation of deviations in two opposite directions.

Prediction

The act of forecasting or estimating future values or outcomes based on current or past data.