What Is the Last Step in Developing an ABC System

question 93

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:

Consumer Tastes

Preferences or inclinations of consumers that influence their purchasing behavior, often shaped by cultural, social, and personal factors.

Consumer Income

The total earnings received by consumers, influencing their purchasing power and spending behavior in the market.

Promotion Form

An approach or tactic used in marketing efforts to communicate information about products or services to potential customers.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.