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 cost objects occurs during the period and cannot be done before the year begins, whereas identifying primary activities, selecting allocation bases, and calculating activity cost allocation rates are all steps that would typically be completed before the year begins.

In Using an ABC System, Which of the Following Steps