When Calculating Activity Cost Rates,management Should Use

question 137

Multiple Choice

When calculating activity cost rates,management should use:

• A)normal capacity utilisation.
• B)budgeted capacity utilisation.
• C)practical capacity.
• D)None of the above.

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Definitions:

Warranty Of Merchantability

An implicit guarantee that a product sold by a merchant meets certain quality and performance standards.

Implied Warranty

A legal term indicating that a product is guaranteed to function as it is supposed to, even if not explicitly stated.

Warranty Of Fitness

A guarantee that a product will meet a buyer's specified needs and expectations.

Express Warranty

A written guarantee, issued to the purchaser of an item, promising to repair or replace it if necessary within a specified period.