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 indirect costs to the cost object

Question

Quizplus · Accepted Answer

The last step in developing an activity-based costing system is allocating the indirect costs to the cost object, which is the product or service being produced. This is done by applying the appropriate overhead rate to each activity and then assigning that cost to the cost object based on how much of the activity it consumes. The other options listed are necessary steps in developing an activity-based costing system, but they are not the final step.

Which of the Following Is the Last Step in Developing