[amp_mcq option1=”$$\\frac{{{\\text{Number of actual working days in a period}}}}{{{\\text{Number of working days in the budget period}}}} \\times 100$$” option2=”$$\\frac{{{\\text{Actual hours worked}}}}{{{\\text{Budgeted hours}}}} \\times 100$$” option3=”$$\\frac{{{\\text{Standard hours for actual production}}}}{{{\\text{Actual hours worked}}}} \\times 100$$” option4=”$$\\frac{{{\\text{Standard hours for actual production}}}}{{{\\text{Budgeted standard hours}}}} \\times 100$$” correct=”option3″]<\/p>\n
The correct answer is: C. $$\\frac{{{\\text{Standard hours for actual production}}}}{{{\\text{Actual hours worked}}}} \\times 100$$<\/p>\n
Activity ratio is a measure of how efficiently a company uses its resources. It is calculated by dividing the standard hours for actual production by the actual hours worked. A high activity ratio indicates that the company is using its resources efficiently, while a low activity ratio indicates that the company is not using its resources efficiently.<\/p>\n
Option A is the number of actual working days in a period divided by the number of working days in the budget period. This is not a measure of efficiency, as it does not take into account the number of hours worked.<\/p>\n
Option B is the actual hours worked divided by the budgeted hours. This is a measure of efficiency, but it does not take into account the standard hours for actual production.<\/p>\n
Option D is the standard hours for actual production divided by the budgeted standard hours. This is a measure of efficiency, as it takes into account both the actual hours worked and the standard hours for actual production. However, it is not a common measure of activity ratio.<\/p>\n
Therefore, the correct answer is C.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”$$\\frac{{{\\text{Number of actual working days in a period}}}}{{{\\text{Number of working days in the budget period}}}} \\times 100$$” option2=”$$\\frac{{{\\text{Actual hours worked}}}}{{{\\text{Budgeted hours}}}} \\times 100$$” option3=”$$\\frac{{{\\text{Standard hours for actual production}}}}{{{\\text{Actual hours worked}}}} \\times 100$$” option4=”$$\\frac{{{\\text{Standard hours for actual production}}}}{{{\\text{Budgeted standard hours}}}} \\times 100$$” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-55432","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n