Multiple Choice
In activity-based costing, which of the following describes how the activity allocation rate is computed?
A) The estimated total indirect cost of the activity divided by the estimated total quantity of cost allocation base
B) The estimated quantity of allocation base times the estimated total indirect cost of the activity
C) The estimated quantity of allocation base divided by the estimated total indirect cost of the activity
D) The estimated quantity of allocation base less the estimated total indirect cost of the activity
Correct Answer:
Verified
Correct Answer:
Verified
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