Measuring the costs of current process activities involves five steps. Which of the following is the last step?
A) Identify cost driver bases and measure activity cost driver rates
B) Assign activity costs to products, jobs or services by multiplying the use of cost driver base by the cost driver rate
C) Identify and measure the different levels of resource spending
D) Analyze the profitability of products using ABC unit-level and full-costing

Question

Quizplus · Accepted Answer

The last step in measuring the costs of current process activities is to analyze the profitability of products using Activity-Based Costing (ABC) unit-level and full-costing. This step involves evaluating how the costs assigned to products affect their profitability.

Measuring the Costs of Current Process Activities Involves Five Steps