Asked by Iesha Tyler on Jul 11, 2024
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Purchase requisitions for Purchasing and the number of payroll checks for Payroll Accounting are examples of activity bases.
Activity Bases
A reference used in managerial accounting to allocate costs to products or services, based on activities that generate costs, such as machine hours or labor hours.
Purchase Requisitions
An internal document used in a business to request the procurement department to order goods or services.
Payroll Checks
Payments made to employees representing wages earned during a pay period.
- Identify the role of activity bases in allocating costs in an organization.
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Learning Objectives
- Identify the role of activity bases in allocating costs in an organization.
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