The final step in using activity-based costing to apply overhead to products is applying production activity costs to products using cost drivers for each production activity.

Question

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Activity-based costing (ABC) involves assigning overhead costs to products based on the activities required for their production. The final step in this process is applying the costs of these activities to the products using specific cost drivers that accurately reflect the consumption of resources by each product.

The Final Step in Using Activity-Based Costing to Apply Overhead