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raketka [301]
3 years ago
7

Explain what is meant by an activity measure. Identify an appropriate activity measure for analyzing the cost structure of the b

ook donations department within the university’s library. Justify your answer. Is the activity measure you identified a true cost driver? Explain
Business
2 answers:
4vir4ik [10]3 years ago
8 0

Answer:

Explanation:

• ACTIVITY MEASURE: A measure of the amount of activity that drives the costs in an activity cost pool

• It is a quantitative measure of how much activity is performed, such as number of books processed.

• A COST DRIVER: is an activity that causes the total cost to change.

• In this case the NUMBER OF BOOKS PROCESSED can be a cost driver

• Since the salary, stipend, and facility costs are essentially fixed that means the number of books processed is not a true cost driver for those costs.

• However, the number of books processed does drive the total cost for the RFID tags and would be considered a true cost driver for this cost.

Gala2k [10]3 years ago
6 0

Answer:

Refer below for the explanation.

Explanation:

-Activity Measure Definition: A portion base in a movement based costing framework; in a perfect world, a proportion of the measure of action that drives the expenses in an action cost pool, hence its a quantitive measure.

-An event that occurs the total cost to change is called cost driver.

-Number of books can be a cost driver.

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Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,00
Marina CMI [18]

Answer:

option (c) $600

Explanation:

Given:

Tax = $4 per unit

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Final equilibrium quantity = 1,700 units

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Now,

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on substituting the respective values, we get

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or

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Hence,

the correct answer is option (c) $600

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The facts that money must withstand the wear and tear that comes from being used over and over again is a measure of its?
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