In using an ABC system, all of the following steps are performed before the company's year begins except
A)identify the primary activities and estimate a total cost pool for each.
B)select an allocation base for each activity.
C)allocate the costs to the cost object using the activity cost allocation rates.
D)calculate an activity cost allocation rate for each activity.

Question

Quizplus · Accepted Answer

Allocating costs to the cost object is done during the year as expenses are incurred, not before the year begins. The other three steps (identifying primary activities, selecting an allocation base, and calculating allocation rates) are typically done in advance to prepare for cost allocation during the year.

In Using an ABC System, All of the Following Steps