Which of the Following Is Not a Step Accountants Must

question 135

Multiple Choice

Which of the following is not a step accountants must follow in activity-based costing?

• A)Identify the activities that consume resources and assign costs to them.
• B)Identify the cost drivers associated with each activity.
• C)Compute a cost rate per cost driver.
• D)Compute the variance between the estimated cost driver and the actual cost driver.

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Definitions:

Trade-In Allowance

The amount credited to a customer for the trade-in of a used item towards the purchase of a new item.

Book Value

The net value of an asset reported in the financial statements, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Accumulated Depreciation

The cumulative sum of depreciation costs charged to a fixed asset from the time it was first utilized.

Accumulated Depreciation

The aggregate cost of a tangible asset that has been recognized as depreciation since the asset's initial use.