Which of the following is a required step in an activity-based costing system?
A) Estimate the total quantity of each cost.
B) Compute the cost allocation rate for each activity.
C) Allocate the costs to the activities.
D) Estimate the total direct costs of each activity.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) requires the computation of the cost allocation rate for each activity to accurately assign costs based on the actual consumption of resources by each activity.

Which of the Following Is a Required Step in an Activity-Based