Put the following steps in a simple costing system for a single indirect-cost pool into correct order:
A.Select the cost-allocation bases to use for allocating indirect (or overhead)costs to the products.
B.Calculate the indirect costs allocated to the products.
C.Identify the direct costs of the products.
D.Identify the products that are the chosen cost objects.
A)DCAB
B)BCAD
C)ABCD
D)BADC

Question

Quizplus · Accepted Answer

The correct sequence for a simple costing system starts with identifying the products as cost objects (D), then identifying the direct costs of these products (C). After that, selecting the cost-allocation bases (A) is necessary before finally calculating the indirect costs allocated to the products (B).

Put the Following Steps in a Simple Costing System for a Single