Which of the following is the proper sequence of events in an activity-based costing system?
A) Identification of cost drivers, identification of cost pools, calculation of pool rates, assignment of cost to products.
B) Identification of cost pools, identification of cost drivers, calculation of pool rates, assignment of cost to products.
C) Assignment of cost to products, identification of cost pools, identification of cost drivers, calculation of pool rates.
D) Calculation of pool rates, identification of cost drivers, identification of cost pools, assignment of cost to products.
E) None of the answers is correct.

Question

Quizplus · Accepted Answer

The correct sequence in an activity-based costing system starts with the identification of cost pools, followed by the identification of cost drivers, then the calculation of pool rates, and finally, the assignment of cost to products.

Which of the Following Is the Proper Sequence of Events