Credit Card Limits Are Included in

question 35

Multiple Choice

Credit card limits are included in

• A)M1 but not M2.
• B)M2 but not M1.
• C)M1 and M2.
• D)neither M1 nor M2.

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Definitions:

Activity Rate

The cost driver rate used in activity-based costing to allocate expenses to cost objects based on their use of activities.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more precise allocation of indirect costs.

Machine-Hours

A unit of measure representing the cumulative number of hours a machine is operated within a specific time frame.

Activity Rate

A measure used to assign costs to cost objects, based on the activities that drive costs in an activity-based costing system.