Bruce Operates a Coffee Stall at the University

question 33

Multiple Choice

Bruce operates a coffee stall at the university.On 30 June 2016,he has $400 in his business bank account,the stall and equipment are worth $5200,ingredients on hand cost $60 and paper cups cost $10.Students owe him $120 and he owes his suppliers $370.He also owes his mother $4100,which enabled him to get started.What is Bruce's owners' equity?

• A) $400
• B) $1320
• C) $4000
• D) $5420

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Definitions:

Activity Rate

The cost driver rate used in activity-based costing to assign overhead costs to products or services.

Activity Cost Pools

A method in cost accounting where costs are accumulated according to activities performed, for allocating overhead costs more accurately to products or services.

Batch-level Activities

Operations or tasks that are performed for each batch of products, regardless of the size of the batch.

Units

Generally refers to the quantitative measure of output or production in business operations.