If a Budgeted Activity Base Is Used as the Base

question 121

Multiple Choice

If a budgeted activity base is used as the base in cost allocation, each department's cost allocation will be predictable, and not influenced by the:

• A) actual total cost.
• B) change in activity.
• C) variations from budget.
• D) actual usage in other departments.

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Definitions:

Bronchioles

The small passages in the lungs that lead from the bronchi to the alveoli, involved in the process of breathing.

Saliva

A clear liquid secreted by the salivary glands in the mouth, containing enzymes that aid in the digestion of carbohydrates and serve as a lubricant for food.

Diaphragm Muscle

A large, dome-shaped muscle located at the base of the lungs and chest cavity that plays a key role in breathing.

Rib Muscles

Muscles located between the ribs that assist in the process of respiration by aiding in chest expansion and contraction.