Which of the following describes how,in ABC,the activity allocation rate is computed?
A) The total estimated activity cost pool is divided by the total estimated activity allocation base.
B) The total estimated activity allocation base is divided by the total estimated activity cost pool.
C) The total estimated activity allocation base is multiplied by the total estimated activity cost pool.
D) You take the total estimated activity allocation base and subtract the total estimated total activity cost pool.
Correct Answer:
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