Which of the following tasks is not normally associated with an activity-based costing system?
A) Calculation of pool rates.
B) Identification of cost pools.
C) Preparation of allocation matrices.
D) Identification of cost drivers.
E) Assignment of cost to products.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) involves calculating pool rates, identifying cost pools, identifying cost drivers, and assigning costs to products. The preparation of allocation matrices is not a standard task associated with ABC, as it primarily focuses on tracing costs more directly to products or services through cost drivers.

Which of the Following Tasks Is Not Normally Associated with an Activity-Based