Under the ABC approach to cost allocation,which of the following steps is NOT used in allocating costs to products?
A) Determine the key components of the system and the relationship among them.
B) Calculate and interpret the new ABC information.
C) Collect relevant data concerning costs and the physical flow of cost-allocation base units among resources and activities.
D) Select cost pools and cost-allocation bases in each producing department and assign all indirect costs to the appropriate cost pool.

Question

Quizplus · Accepted Answer

Step D is not used in allocating costs to products under the ABC approach. Instead, step D is used in assigning indirect costs to cost pools, which is a necessary step in the overall cost allocation process.

Under the ABC Approach to Cost Allocation,which of the Following