An Activity-Based Costing System Is Developed in Four Steps

question 90

Multiple Choice

An activity-based costing system is developed in four steps. a. Compute the allocation rate for each activity
B. Identify activities and estimate their total costs
C. Identify the cost driver for each activity and then estimate the quantity of each driver's allocation base
D. Allocate the indirect costs to the cost object
Which of the following is the correct order of performing these steps?

• A)a, b, c, d
• B)c, a, b, d
• C)b, c, a, d
• D)b, a, c, d

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Definitions:

Excise Tax

A tax levied on specific goods, services, or activities, often with the aim of reducing their consumption or generating revenue.

Equilibrium Output

The level of output at which the quantity supplied equals the quantity demanded in a market.

Pollution Abatement

Actions or measures implemented to reduce, control, or eliminate pollution from various sources.

Society's Perspective

The collective viewpoints, interests, and priorities of a community or population regarding various issues or policies.