The Activity Rate for the Order Filling Activity Cost Pool

question 138

Multiple Choice

The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

• A)$2.86 per order
• B)$49.00 per order
• C)$5.10 per order
• D)$2.00 per order

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Definitions:

Pareto Optimal

An economic state where resources are allocated in such a way that it is impossible to make any one individual better off without making at least one individual worse off.

Utility Functions

Functions that model the preference ranking of various combinations or bundles of goods and services by assigning a utility value based on the satisfaction obtained.

Marginal Rate of Substitution

The rate at which a consumer is willing to substitute one good for another while maintaining the same level of satisfaction or utility.

Wheat

A cereal grain, originally from the Levant region of the Near East and Ethiopian Highlands, but now cultivated worldwide, a staple food for many cultures.