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

question 150

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:

Market-Entry Barriers

Obstacles that companies face when trying to enter a new market, which can include regulatory policies, capital requirements, and established competitor advantage.

Price Sensitivity

The degree to which the demand for a product changes in response to a change in its price.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically including product, price, place, and promotion.

Variable Costs

Expenses that vary directly with the level of production or output, such as materials and labor.