Which of the following is the last step in developing an activity-based costing system?
A)estimating the total quantity of the cost driver
B)estimating the total indirect costs of each activity
C)identifying the activities
D)allocating costs to the cost object

Question

Quizplus · Accepted Answer

The last step in developing an activity-based costing system is allocating costs to the cost object, which is typically a product or service. This step involves assigning indirect costs to each activity based on the quantity of the cost driver used by the activity, and then assigning these costs to the cost object based on the activity usage. Estimating the total quantity of the cost driver and the total indirect costs of each activity are important steps in the process, but they are not the final step. Identifying the activities is also an important step, but it is the first step in the process.

Which of the Following Is the Last Step in Developing