The Last Step in the Preparation of Activity-Based Costing Data

question 121

Multiple Choice

The last step in the preparation of activity-based costing data is to

• A)Determine the cost pool resources.
• B)Determine the activity driver.
• C)Allocate cost to products.
• D)Calculate the unit product cost.

---

Definitions:

Generally Accepted Accounting Principles

A framework of accounting standards, principles, and procedures that companies must adhere to when compiling their financial statements, primarily in the United States.

Verbal Commitment

An agreement or promise spoken rather than written, relying on the honor of the parties for its fulfillment.

Contract Is Signed

The formal agreement between parties becomes legally binding when all necessary signatures are affixed to the document.

Cash Flow From Assets

The total amount of money being transferred into and out of a company's assets, indicating the company's financial health and operational efficiency.