What is the last step in the seven-step guideline for ABC systems?
A)Calculate the total costs of the cost objects (outputs)by adding the direct costs traced to them and the activity-based costs allocated to them.
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.

Question

Quizplus · Accepted Answer

The last step in the seven-step guideline for ABC systems is to calculate the total costs of the cost objects (outputs) by adding the direct costs traced to them and the activity-based costs allocated to them. This step helps to determine the accurate cost of each output, which can be useful in price setting, product mix decisions, and profitability analysis.

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