Which of the Following Is the Proper Sequence of Events

question 92

Multiple Choice

Which of the following is the proper sequence of events in an activity-based costing system?

• A)Identification of cost drivers,identification of cost pools,calculation of pool rates,assignment of cost to products.
• B)Identification of cost pools,identification of cost drivers,calculation of pool rates,assignment of cost to products.
• C)Assignment of cost to products,identification of cost pools,identification of cost drivers,calculation of pool rates.
• D)Calculation of pool rates,identification of cost drivers,identification of cost pools,assignment of cost to products.
• E)Some other sequence of the four activities listed abovE.

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Definitions:

Horizontal Analysis

Also known as trend analysis, it compares financial statements line items over several periods to identify changes and trends.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Statement Of Income

A financial statement that shows a company’s revenues, expenses, and profit or loss over a specific time period, often quarterly or annually.

Continuing Operations

Activities and processes that are not scheduled to be discontinued or sold off, representing the ongoing, primary business activities of an entity.