Put the following steps in a simple costing system for a single indirect-cost pool into correct order:
A.Identify the indirect costs associated with each cost-allocation base.
B.Calculate the total cost of the products by adding all direct and indirect costs assigned to the products.
C.Calculate the rate per unit of each cost-allocation base.
D.Identify the direct costs of the products.
A)ACBD
B)ADBC
C)CBDA
D)DACB

Question

Quizplus · Accepted Answer

First, identify the direct costs of the products (D), then identify the indirect costs associated with each cost-allocation base (A). Next, calculate the rate per unit of each cost-allocation base (C), and finally, calculate the total cost of the products by adding all direct and indirect costs assigned to the products (B).

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