When Determining Product Costs,the Last Step in the Traditional Approach

question 32

Multiple Choice

When determining product costs,the last step in the traditional approach to cost allocation is ________.

• A) divide costs in each producing department into direct costs and indirect costs
• B) trace direct costs to products
• C) select cost pools and cost allocation bases in each production department and assign indirect department costs to the appropriate cost pool
• D) allocate the costs in each cost pool to the products in proportion to their usage of the related cost-allocation base

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Definitions:

Country

A distinct territorial body or political entity recognized as an independent nation.

Stockholders

Individuals or entities that own shares in a corporation, granting them certain rights such as voting on corporate matters.

Financing Source

Any mechanism or method through which an entity obtains funds to finance its operations, projects, or investments.