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)Identification of cost drivers, assignment of costs to products, calculation of pool rates, identification of cost pools.

Question

Quizplus · Accepted Answer

The proper sequence of events in an activity-based costing system is first identifying the cost pools, then identifying the cost drivers, calculating pool rates, and finally assigning costs to products based on their usage of the cost drivers. Option B follows this sequence correctly.

Which of the Following Is the Proper Sequence of Events