The second step in the preparation of activity-based costing data is to
A)calculate activity cost pool rates.
B)develop activity cost pools.
C)allocate costs to products.
D)calculate the

Question

Quizplus · Accepted Answer

The second step in activity-based costing is to develop activity cost pools. This involves grouping individual activities into pools based on their similarity in terms of the cost driver that causes the activity to be performed, such as machine setups or product inspections. Once cost pools have been established, activity costs can be allocated to them.

The Second Step in the Preparation of Activity-Based Costing Data