Which of the following is the correct order of the four steps of tracking product costs?
A) assign → accumulate → allocate → adjust
B) accumulate → assign → allocate → adjust
C) adjust → allocate → accumulate → assign
D) allocate → adjust → accumulate → assign

Question

Quizplus · Accepted Answer

The correct order of tracking product costs is as follows:
1. Accumulate: gathering direct and indirect costs associated with the production of goods
2. Assign: attaching the accumulated costs to specific units or batches of goods produced
3. Allocate: distributing the total accumulated costs to individual cost centers or departments
4. Adjust: making any necessary adjustments for variations in the actual costs incurred versus the estimated costs. 
Therefore, the correct order of steps is accumulate → assign → allocate → adjust, which is option B.

Which of the Following Is the Correct Order of the Four