Which of the following is not a step in implementing an activity-based costing system?
A)Developing activity cost pools
B)Identifying activities
C)Calculating predetermined overhead rates
D)Calculate the

Question

Quizplus · Accepted Answer

Calculating predetermined overhead rates is a necessary step in implementing a traditional costing system, but not in implementing an activity-based costing system. Instead, in activity-based costing, the focus is on identifying and categorizing activities, and then assigning costs to those activities. Developing activity cost pools is another key step, as is determining the cost drivers for each activity.

Which of the Following Is Not a Step in Implementing