Managers Can Use Steps as a Tool in Simple Costing

question 41

Multiple Choice

Managers can use steps as a tool in simple costing systems when they have a single indirect cost pool because it helps them to allocate indirect costs using a single indirect-cost rate.Which of the following is not one of the steps to guide them in this process?

• A)Identify the Products that are the Chosen Cost Objects.
• B)Identify the Direct Costs of the Products.
• C)Select the Cost-Allocation Bases to use for Allocating Indirect (or Overhead)Costs to the Products.
• D)Identify the Indirect Costs Associated with Each Cost-Allocation Base.
• E)Application of the Five-Step Decision Making Platform.

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