In using an ABC system,which of the following steps is NOT performed before the company's year begins?
A)Identify the primary activities and estimate a total cost pool for each.
B)Allocate the costs to the cost object using the activity cost allocation rates.
C)Select an allocation base for each activity.
D)Calculate an activity cost allocation rate for each activity.

Question

Quizplus · Accepted Answer

Allocating costs to the cost object using activity cost allocation rates is a step that occurs during or after the company's year has ended, as it involves assigning costs to specific products, services or customers. The other three steps listed typically occur before the year begins during the implementation of an ABC system.

In Using an ABC System,which of the Following Steps Is