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:

Private Companies

Private companies are businesses owned by individuals or groups that do not trade their stock publicly on stock exchanges.

Public Companies

Companies whose shares are traded publicly on stock exchanges, allowing for wider ownership by investors.

Violated

Breached or transgressed, referring to a situation where laws, rules, or agreements are not followed.

Deregulation

The process of removing government restrictions and regulations in a sector to allow for more competition and efficiency in the market.