Which of the Following Is Not a Step in Designing

question 23

Multiple Choice

Which of the following is not a step in designing a product costing system?

• A)Determine how to form cost pools.
• B)Identify which cost pools to allocate.
• C)Identify the cost driver to use for allocating each cost pool.
• D)Determine the appropriate denominator volume of each cost driver to calculate allocation rates.
• E)All of the above are steps in designing a product costing system.

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Definitions:

Exports

Goods and services sold to other countries.

World Production

The total output of goods and services produced by all countries around the globe.

Autarky

A situation in which a country does not trade with other countries.

Comparative Advantage

The advantage conferred on an individual or country in producing a good or service if the opportunity cost of producing the good or service is lower for that individual or country than for other producers.