Asked by Marina González on May 18, 2024
Verified
An activity rate of $512 per product design means that on average a product design consumes resources that cost $512.
Activity Rate
A rate used to allocate indirect costs to products or services, based on a specific activity or driver.
Product Design
The process of creating, defining, and managing the specifications of a physical product or its system to solve a particular problem.
- Comprehend the process of calculating activity rates in an ABC system.
Verified Answer
SC
Savanna CassidyMay 19, 2024
Final Answer :
True
Explanation :
An activity rate represents the cost of resources required to carry out an activity, in this case, producing a product design. Therefore, an activity rate of $512 per product design means that, on average, the resources required to produce one product design cost $512.
Learning Objectives
- Comprehend the process of calculating activity rates in an ABC system.
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