What Is the Last Step in the Seven-Step Guideline for ABC

question 41

Multiple Choice

What is the last step in the seven-step guideline for ABC systems?

• A)Calculate the total costs of the cost objects (outputs)by adding the direct costs traced to them and the activity-based costs allocated to them.
• B)Identify the outputs that are represented by cost objects.
• C)Identify and select the activities,associated activity-cost drivers and activity-cost pools to allocate the costs to outputs.
• D)Identify the indirect costs for each resource-cost pool and associated resource-cost drivers to allocate the costs to activity-cost pools.

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Definitions:

Flow Rate

The volume of fluid that passes through a given point within a set period of time, usually measured in liters per minute (L/min) or gallons per minute (GPM).

Hydraulic Circuit

A system using hydraulic fluid under pressure to transfer force and motion between components.

Gallons Per Minute

A measure of fluid flow rate that indicates how many gallons of fluid pass a particular point in one minute.

Atmospheric Pressure

The pressure exerted by the weight of the atmosphere, typically measured at sea level.