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Schnyyder Louis
on Nov 17, 2024

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

Relevant Activity Base

A factor that causes changes in the behavior of costs, used to allocate fixed costs to cost objects effectively.

Decision-Making Needs

Requirements or information essential for making informed choices or judgments in various situations.

Management

The coordination and administration of tasks to achieve a company's objectives, involving planning, organizing, leading, and controlling resources.

  • Understand the significance of choosing the appropriate activity base for cost allocation.
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JL
Janet LopezNov 19, 2024
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