What Is the Last Step in Developing an Activity-Based Costing

question 73

Multiple Choice

What is the last step in developing an activity-based costing system?

• A) Estimate the total quantity of the cost driver.
• B) Estimate the total indirect costs of each activity.
• C) Identify the activities.
• D) Allocate costs to the cost object.

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Definitions:

Demand

The desire and ability of consumers to purchase goods and services at given prices, influencing market equilibrium and pricing strategies.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, typically identified by a fall in GDP in two successive quarters.

Keynes

Pertains to John Maynard Keynes, an English economist whose theories revolutionized macroeconomic practice and government economic strategies.

Aggregate Supply

The nation’s total output of goods and services.