Under the Traditional Approach to Cost Allocation,which of the Following

question 1

Multiple Choice

Under the traditional approach to cost allocation,which of the following steps is NOT used in allocating costs to products?

• A) Divide the costs in each producing department, including allocated costs, into direct costs and indirect costs.
• B) Trace the direct costs to the appropriate products.
• C) Select cost pools and cost-allocation bases in each producing department and assign all indirect costs to the appropriate cost pool.
• D) Collect relevant data concerning costs and the physical flow of cost-allocation base units among resources and activities.

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Definitions:

Forgeries

The fraudulent making or alteration of a document with the intent to deceive or harm.

Acceptance

Within the realm of contract law, the process by which one accepts the conditions of a proposal, thus forming a legally binding agreement.

Draft

A preliminary version of a piece of writing or a plan for something, subject to revisions or edits.

Breach of Warranty

The violation of a guarantee or promise regarding the quality or condition of a product.