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:

Gatekeeper

An individual or group that controls access to something, often functioning as a decision-maker who decides whether a message or information will be passed along.

Buying Center

A group of individuals within an organization who participate in the decision-making process for purchasing products or services.

Sales Representative

A professional tasked with selling and promoting a company's products or services, often acting as the liaison between the company and its customers.

Gatekeeper

An individual or entity that controls access to something, such as information, resources, or market entry, often influencing the flow and direction of activities.