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Saifali Nakarani
on Nov 12, 2024

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The relevant activity base for a cost depends on which base is most closely associated with the cost and the decision-making needs of management.

Relevant Activity Base

A factor that directly influences the costs incurred during a business activity, used for allocating costs in activity-based costing.

Decision-making Needs

The requirement for relevant, timely, and accurate information to make informed choices in business operations and strategies.

  • Understand the significance of selecting the suitable activity base for costs.
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Andrew GironNov 17, 2024
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