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Time-Driven Activity-Based Costing (TDABC) Requires Its Users to Calculate the Rate

Question 88

Multiple Choice

Time-Driven Activity-Based Costing (TDABC) requires its users to calculate the rate for supplying an activity. The correct formula for doing so would be


A) Add the total cost of activity to the practical capacity available expressed in time
B) Divide the practical capacity available expressed in time by the total cost of activity
C) Divide the total cost of activity by the practical capacity available expressed in time
D) Multiply the total cost of activity by the practical capacity available expressed in time

Correct Answer:

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