Calculate the Cost of Processing One Sales Order If the Total

question 3

Multiple Choice

Calculate the cost of processing one sales order if the total activity cost is $1 720 000 p.a., the activity driver is the number of orders received and the annual quantity of the activity driver is
43 000 orders.

• A) $20 per order.
• B) $25 per order.
• C) $40 per order.
• D) $50 per order.

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Definitions:

Universal Life Insurance

A form of straight life insurance that allows the policy owner flexibility in choosing and changing terms of the policy.

Policy Owner

The individual or entity that holds and controls an insurance policy and has the right to exercise all privileges under the contract.

Face Value

The nominal or stated value of a financial instrument or document, such as a bond or stamp, not necessarily its market value.

Premiums

The amount of money charged by an insurance company for active coverage.