The following items are used in tracing costs in an ABC system.In which order are they used?
A)1,2,3,4
B)2,3,4,1
C)2,4,3,1
D)4,3,1,2

Question

The following items are used in tracing costs in an ABC system.In which order are they used? 
A)1,2,3,4 
B)2,3,4,1 
C)2,4,3,1 
D)4,3,1,2

Quizplus · Accepted Answer

In an ABC system, the steps are typically in the following order: 
1. Identify the activities and their associated costs 
2. Identify the cost drivers or activity measures 
3. Assign costs to each activity based on their use of the cost drivers 
4. Assign costs of each activity to the products or services that use them based on the quantity of the cost drivers consumed. 
Therefore, the correct order is: 2, 4, 3, 1. As a result, the best choice is C, which orders the options in this sequence.

The Following Items Are Used in Tracing Costs in an ABC