Which of the following must be determined to calculate an activity rate?
A) value of each activity
B) processing ratio of each activity
C) expenditure level of each activity
D) practical capacity of each activity

Question

Quizplus · Accepted Answer

To calculate an activity rate, we need to know the practical capacity of each activity. Activity rate is calculated by dividing the cost of an activity by its practical capacity. Therefore, option D (practical capacity of each activity) is the correct choice. The value of each activity, processing ratio of each activity, and expenditure level of each activity are not essential for calculating the activity rate.

Which of the Following Must Be Determined to Calculate an Activity