ACCA · Question 17 · Specialist cost and management accounting techniques
Section B - Case 1: GreenHarvest
GreenHarvest operates a large-scale organic farm producing two main crops: Quinoa and Kale. The farm is transitioning from traditional absorption costing to Activity-Based Costing (ABC).
Another overhead activity is 'Irrigation System Maintenance'. Which of the following would be the most appropriate cost driver for this activity?
Answer options:
Number of seeds planted
Number of irrigation hours
Sales revenue of the crops
Number of farm workers
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