In Developing an ABC System, What Is the Last Step

question 234

Multiple Choice

In developing an ABC system, what is the last step?

• 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:

Environment Scan

The process of collecting and analyzing information about the internal and external environment to identify opportunities and threats.

Best-Cost Provider

A strategy where a company aims to offer products or services that are of high quality and relatively low cost to attain a competitive advantage.

Porter's

Porter's frameworks involve strategic tools created by Michael Porter, such as the Five Forces analysis and the Value Chain, used for assessing the competitive environment and organizational capabilities.

Locally Grown

Refers to products, especially food items, that are produced and consumed within a relatively small geographic area.