During step 3 of activity-based costing, activity overhead cost pool rates are used to assign overhead costs to final cost objects. Proper determination of activity rates depends on all of the following: (Check all that apply). A. Proper determination of factor which drive cost
B. Proper measurement of activities

Proper determination of activity rates depends on the following :

A. Proper determination of factor which drive cost

B. Proper measurement of activities

Explanation:

Predetermined Activity Rates = Overhead Cost / Total Cost Driver units

Thus it is important to measure correctly the overheads incurred for each Activity that exist that accumulated overheads.

It is also important to determine correct cost drivers for those overheads identified to absorb costs correctly into outputs.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.