Answer:
Explanation:
• ACTIVITY MEASURE: A measure of the amount of activity that drives the costs in an activity cost pool
• It is a quantitative measure of how much activity is performed, such as number of books processed.
• A COST DRIVER: is an activity that causes the total cost to change.
• In this case the NUMBER OF BOOKS PROCESSED can be a cost driver
• Since the salary, stipend, and facility costs are essentially fixed that means the number of books processed is not a true cost driver for those costs.
• However, the number of books processed does drive the total cost for the RFID tags and would be considered a true cost driver for this cost.
Answer:
Refer below for the explanation.
Explanation:
-Activity Measure Definition: A portion base in a movement based costing framework; in a perfect world, a proportion of the measure of action that drives the expenses in an action cost pool, hence its a quantitive measure.
-An event that occurs the total cost to change is called cost driver.
-Number of books can be a cost driver.
