The Following Tasks Are Associated with an Activity-Based Costing System

question 2

Multiple Choice

The following tasks are associated with an activity-based costing system:
1- Assignment of cost to products
2- Calculation of pool rates
3- Identification of cost drivers
4- Identification of cost pools
Which of the following choices correctly expresses the proper order of the preceding tasks?

• A) 1, 2, 3, 4.
• B) 2, 4, 1, 3.
• C) 3, 4, 2, 1.
• D) 4, 2, 1, 3.
• E) 4, 3, 2, 1.

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Definitions:

Lean Business Model

An approach to business aimed at creating value for customers with minimal waste and resources.

Planning (P)

The process of setting objectives, developing strategies, and outlining tasks and schedules to achieve the goals.

Implementation (I)

The process of putting a decision or plan into effect; the action that must follow any preliminary thinking in order for something to actually happen.

Control (C)

In management and accounting, this refers to the systems and processes that are used to monitor and manage an organization's financial resources and operations.