Which of the following is the proper sequence of events in an activity-based costing system?
A)Identiﬁcation of cost drivers, identiﬁcation of cost pools, calculation of pool rates, assignment of cost to products.
B)Identiﬁcation of cost pools, identiﬁcation of cost drivers, calculation of pool rates, assignment of cost to products.
C)Assignment of cost to products, identiﬁcation of cost pools, identiﬁcation of cost drivers, calculation of pool rates.
D)Calculation of pool rates, identiﬁcation of cost drivers, identiﬁcation of cost pools, assignment of cost to products.
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

The proper sequence of events in an activity-based costing system is to first identify cost pools, then identify cost drivers, calculate pool rates, and finally assign costs to products. This ensures that costs are accurately allocated to products based on the specific activities that are driving those costs.

Which of the Following Is the Proper Sequence of Events