A Secondary Activity Is

question 152

Multiple Choice

A secondary activity is

• A) the second activity on the activity list.
• B) an activity driver.
• C) one that is consumed by the final cost object.
• D) one that is consumed by intermediate cost objects.

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Definitions:

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

Nominal Interest Rate

The interest rate as stated on a loan or financial product, not taking into account inflation or fees.

Annual Compounding

The method of accruing interest on the main amount of a deposit or loan annually.

Semi-annual Compounding

The process of calculating interest where the accumulated interest is added to the principal sum twice a year.