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

question 25

Multiple Choice

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

• A) Determine the key components of the system and the relationship among them.
• B) Calculate and interpret the new ABC information.
• C) Collect relevant data concerning costs and the physical flow of cost-allocation base units among resources and activities.
• D) Select cost pools and cost-allocation bases in each producing department and assign all indirect costs to the appropriate cost pool.

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Definitions:

Parasympathetic Nervous System

A division of the autonomic nervous system that conserves energy by slowing the heart rate and increasing intestinal and gland activity, facilitating a state of rest and digest.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that describes the body's short-term and long-term reactions to stress.

Distress

Negative stress, the kind felt during an illness or when going through a divorce.

Major Life Changes

Significant events or transitions in a person's life that require adaptation, such as marriage, divorce, moving to a new location, or significant loss.