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What Is the Second Step in the Seven-Step Guideline for ABC

Question 49

Multiple Choice

What is the second step in the seven-step guideline for ABC systems?


A) Identify and trace the direct costs to the cost objects (outputs) .
B) Identify the outputs that are represented by cost objects.
C) Identify and select the activities,associated activity-cost drivers and activity-cost pools to allocate the costs to outputs.
D) Identify the indirect costs for each resource-cost pool and associated resource-cost drivers to allocate the costs to activity-cost pools.

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