In which order do the following activities take place for job costing:
I For each overhead cost pool, calculate an overhead allocation rate.
II Identify the relevant cost object.
III Identify one or more overhead cost pools and allocation bases.
IV For each overhead cost pool, allocate costs to the cost object.
A) I, II, III, IV
B) II, III, I, IV
C) III, IV, I, II
D) IV, I, II, III

Question

In which order do the following activities take place for job costing: 
I For each overhead cost pool, calculate an overhead allocation rate.
II Identify the relevant cost object.
III Identify one or more overhead cost pools and allocation bases.
IV For each overhead cost pool, allocate costs to the cost object.
A) I, II, III, IV
B) II, III, I, IV 
C) III, IV, I, II
D) IV, I, II, III

Quizplus · Accepted Answer

The correct order for job costing starts with identifying the relevant cost object (II), then identifying one or more overhead cost pools and allocation bases (III), followed by calculating an overhead allocation rate for each overhead cost pool (I), and finally allocating costs to the cost object for each overhead cost pool (IV).

In Which Order Do the Following Activities Take Place for Job