In Using an ABC System, Which of the Following Steps

question 99

Multiple Choice

In using an ABC system, which of the following steps is NOT performed before the company's year begins?

• A) Identify the primary activities and estimate a total cost pool for each.
• B) Allocate the costs to the cost object using the activity cost allocation rates.
• C) Select an allocation base for each activity.
• D) Calculate an activity cost allocation rate for each activity.

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Definitions:

Imports

Imports are goods or services brought into one country from another country for sale, often to satisfy domestic demand for products not locally produced.

Importing

The purchase of goods and services from foreign sources.