Put the Following Steps in a Simple Costing System for a Single

question 123

Multiple Choice

Put the following steps in a simple costing system for a single indirect-cost pool into correct order:
A.Identify the indirect costs associated with each cost-allocation base.
B.Calculate the total cost of the products by adding all direct and indirect costs assigned to the products.
C.Calculate the rate per unit of each cost-allocation base.
D.Identify the direct costs of the products.

• A)ACBD
• B)ADBC
• C)CBDA
• D)DACB

---

Definitions:

Cost of Borrowing

The cost of borrowing is the total expense that a company or individual incurs in taking out a loan, including interest payments, fees, and any other charges.

Cash Flows

The net amount of cash being transferred into and out of a business, used as an indicator of financial health.

Miller-Orr Model

The Miller-Orr Model is a financial model used to manage cash balances by setting upper and lower limits on cash reserves, suggesting when to transfer funds to minimize costs.

Lower Limit

The minimum value or boundary that a variable, such as a stock price or interest rate, can reach or be set to.