What is the final step in the four-step process to allocate indirect costs to cost objects?
A) Accumulate indirect costs for a period of time in a cost pool.
B) Select an allocation base for each cost pool.
C) Multiply the percentage of total cost-allocation units used for each cost object by the total costs in the cost pool to determine the cost allocated to each cost object.
D) Measure the units of the cost-allocation base used for each cost object and compute the total units used for all cost objects.

Question

Quizplus · Accepted Answer

The final step in the four-step process to allocate indirect costs to cost objects is to multiply the percentage of total cost-allocation units used for each cost object by the total costs in the cost pool to determine the cost allocated to each cost object. This step calculates the indirect cost allocation for each cost object based on the allocation base chosen for each cost pool.

What Is the Final Step in the Four-Step Process to Allocate