The following tasks are associated with an activity-based costing system:
1- Assignment of cost to products
2- Calculation of pool rates
3- Identification of cost drivers
4- Identification of cost pools
Which of the following choices correctly expresses the proper order of the preceding tasks?
A)1,2,3,4.
B)2,4,1,3.
C)3,4,2,1.
D)4,2,1,3.
E) 4,3,2,1.

Question

Quizplus · Accepted Answer

In an activity-based costing system, the proper order is: identify cost pools, identify cost drivers, calculate pool rates, and then assign costs to products.

The Following Tasks Are Associated with an Activity-Based Costing System