Because ABC is an allocation, it involves the two steps involved in any allocation - compute the allocation rate and multiply the rate by the number of cost driver units in a cost object.

Name: Because ABC is an allocation, it involves the two steps involved in any allocation - compute the allocation rate and multiply the rate by the number of cost driver units in a cost object.
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Question

Quizplus · Accepted Answer

This statement accurately describes the two steps involved in ABC allocation.

Because ABC Is an Allocation, It Involves the Two Steps