In developing an ABC system, what is the last step?
A)Identify the primary activities and estimate a total cost pool for each.
B)Select an allocation base for each activity.
C)Allocate the costs to the cost object using the activity cost allocation rates.
D)Calculate an activity cost allocation rate for each activity.

Question

Quizplus · Accepted Answer

The last step in developing an ABC system is to allocate the costs to the cost object using the activity cost allocation rates. This step involves applying the activity cost allocation rates derived in earlier steps to assign costs to products or services based on the activities they require.

In Developing an ABC System, What Is the Last Step