Put the following ABC implementation steps in order ________. A Use the activity overhead rates to assign overhead costs to cost objects.
B Compute the allocation rates.
C Trace overhead costs to cost pools.
D Identify the activities and the overhead costs they cause.
A)DACB
B)DBCA
C)BADC
D)CDAB
E)DCBA

Question

Quizplus · Accepted Answer

The correct order for implementing Activity-Based Costing (ABC) is: Identify the activities and the overhead costs they cause (D), Trace overhead costs to cost pools (C), Compute the allocation rates (B), and Use the activity overhead rates to assign overhead costs to cost objects (A).

Put the Following ABC Implementation Steps in Order ________