If the total activity cost were unknown, it could be calculated by:
A) Dividing the total activity driver by the activity rate.
B) Multiplying the total activity driver by the activity rate.
C) Adding the total activity driver to the activity rate.
D) Subtracting the activity rate from the total activity driver.

Question

Quizplus · Accepted Answer

The total activity cost can be calculated by multiplying the total activity driver by the activity rate. This is because the activity rate represents the cost per unit of activity, and multiplying it by the total activity driver will give the total cost of the activity.

If the Total Activity Cost Were Unknown, It Could Be