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:

Modernization

The process of adopting the latest technology, organizational practices, or cultural norms, often associated with progress and improvement in society.

Modernization Theory

is a theoretical perspective that links societal development with the adoption of modern technological, political, and economic systems, traditionally viewing such modernization as a positive and linear progression.

Malthusian Theory

Proposes that population growth is potentially exponential while the growth of the food supply is linear, leading to overpopulation and societal issues.

Demographic Transition Theory

A theory that describes the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.