What Is the Last Step in Developing an ABC System

question 34

Multiple Choice

What is the last step in developing an ABC system?

• A) Identify the primary activities and estimate a total cost pool for each.
• B) Allocate the costs to the cost object using the activity cost allocation rates.
• C) Select an allocation base for each activity.
• D) Calculate an activity cost allocation rate for each activity.

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Definitions:

Future Wages

Earnings that an individual is expected to receive from their employment in the upcoming period.

Statutes

Written laws passed by a legislative body at the national or state level.

Gratuitous Assignment

The act of transferring rights or interests from one party to another without requiring any consideration or payment in return.

Revocable

Capable of being revoked, withdrawn, or cancelled, often referring to trusts, licenses, or permissions.