In Using an ABC System, All of the Following Steps

question 120

Multiple Choice

In using an ABC system, all of the following steps are performed before the company's year begins except

• A)identify the primary activities and estimate a total cost pool for each.
• B)select an allocation base for each activity.
• C)allocate the costs to the cost object using the activity cost allocation rates.
• D)calculate an activity cost allocation rate for each activity.

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Definitions:

Personal Selling Activities

Direct interaction between sales representatives and potential customers to persuade the customer to make a purchase.

Salesperson Traits

Characteristics or qualities that are typically found in successful sales professionals, such as persuasion, communication skills, and resilience.

Financial Compensation

Monetary payment provided to employees for their labor or to individuals as reparation for loss or injury.

Extra Vacation Days

Additional days off from work granted to employees beyond the standard vacation policy, often used as a benefit or reward.