The Following Four Steps Are Necessary in Order to Use

question 61

Multiple Choice

The following four steps are necessary in order to use an activity-based costing system:
1) Compute the allocation rate for each activity.
2) Identify activities and estimate their total costs.
3) Identify the cost driver for each activity and then estimate the quantity of each driver's allocation base.
4) Allocate the indirect costs to the cost object.
In what order are these steps performed?

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

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Definitions:

Mental Age

A measure of an individual's mental ability expressed as the age at which an average individual reaches the same level of performance.

Charles Spearman

A psychologist known for his pioneering work in statistics and intelligence, specifically for his development of factor analysis and the concept of a general intelligence factor, "g".

Intelligence

The ability to acquire, understand, and apply knowledge and skills, and to adapt to new situations.

Stanford-Binet

An individually administered intelligence test that was revised from the original Binet-Simon Scale, measuring five factors of cognitive ability.