When Using a Two Stage Activity-Based Costing System,which of the Following

question 21

Multiple Choice

When using a two stage activity-based costing system,which of the following is NOT a legitimate step?

• A) Identify a cost pool for each significant activity.
• B) Assign the indirect resource cost to the appropriate cost pool.
• C) Allocate the costs in each pool to products or services using multiple cost drivers.
• D) Select an allocation base for each cost pool.

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Definitions:

Echinoderms

A phylum of marine animals characterized by radial symmetry, a calcareous skeleton, and a water vascular system; includes starfish, sea urchins, and sea cucumbers.

Parasitizes

Describes the action of living as a parasite in or on another organism, exploiting the host for sustenance without mutual benefit.

Biramous Appendages

Appendages with two jointed branches extending from their base. Compare with uniramous appendages.

Arthropods

A large group of invertebrate animals that includes insects, spiders, crustaceans, and others, characterized by segmented bodies, exoskeletons, and jointed limbs.