The following list includes descriptions of the steps in the six-step process to allocate support department costs to production departments. Which of the following descriptions is incorrectly paired to the step number?
A)Step 1: Apply production department costs to products.
B)Step 2: Select a cost driver for each department.
C)Step 3: Determine the usage of the support department cost river by each department.
D)Step 4: Determine the percentage usage of support department cost drivers by each department.

Question

Quizplus · Accepted Answer

Step 1 in the process of allocating support department costs to production departments involves identifying all the costs of the support departments that will be allocated, not applying production department costs to products. Applying production department costs to products is a later step in the costing process, after support department costs have been allocated.

The Following List Includes Descriptions of the Steps in the Six-Step