Which of the following is not a step in the cost allocation process?
A)Calculate the cost involved in each step of the production process.
B)Select an allocation base to relate the cost pools to the cost objectives.
C)Form cost pools.
D)Identify the cost objectives.

Question

Quizplus · Accepted Answer

Calculating the cost involved in each step of the production process is not a step in the cost allocation process. Rather, it is part of the cost accumulation process which comes before cost allocation. The four steps in the cost allocation process are identifying the cost objectives, forming cost pools, selecting an allocation base, and allocating costs to the cost objectives based on the allocation base.

Which of the Following Is Not a Step in the Cost