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:

Investments

Assets purchased with the expectation that they will generate income or appreciate in value over time.

Particular Industry

Relates to a specific sector or category of business that shares common characteristics or products.

Prospectus

A formal document that is required by and filed with the Securities and Exchange Commission that provides details about an investment offering for sale to the public.

Investment Policy

Investment Policy outlines a strategy, guidelines, and constraints for managing an investment portfolio.