Calculate the Activity Cost Per Unit of Activity Driver If

question 26

Multiple Choice

Calculate the activity cost per unit of activity driver if the activity cost is $3500, the activity driver is the number of batches and the total quantity of the activity driver is 1750 batches.

• A) $3.00 per batch.
• B) $1.50 per batch.
• C) $2.00 per batch.
• D) $2.50 per batch.

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Definitions:

Central Focus

The primary point of interest or activity in a given context or discussion.

Bads

Items or factors that negatively impact societal welfare or personal well-being, often considered the opposite of goods.

Goods

Tangible products or commodities that satisfy human wants and provide utility.

Mental Accounting

The tendency people have to create separate “mental boxes” (or “accounts”) in which they deal with particular financial transactions in isolation rather than dealing with them as part of an overall decision-making process that would consider how to best allocate their limited budgets across all possible options by using the utility-maximizing rule.