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)Some other sequence of the four activities listed abovE.

Question

Quizplus · Accepted Answer

The proper sequence of events in an activity-based costing system is first to identify cost pools, then identify cost drivers, then calculate pool rates, and finally assign costs to products. Option B is the only sequence that follows this order.

Which of the Following Is the Proper Sequence of Events