Asked by
Saifali Nakarani
on Nov 12, 2024Verified
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.
Verified Answer
AG
Learning Objectives
- Understand the significance of selecting the suitable activity base for costs.