The last step in activity-based costing (ABC)is to
A)identify the activities that consume resources,and assign costs to those activities.
B)identify the cost driver(s)associated with each activity.
C)compute a cost rate per cost driver unit.
D)assign costs to products by multiplying the cost driver rate by the volume of cost drivers consumed by the product.

Question

Quizplus · Accepted Answer

The last step in activity-based costing is to assign costs to products by multiplying the cost driver rate by the volume of cost drivers consumed by the product. This is the final step in determining the overhead cost of each product, allowing for more accurate pricing decisions and identification of areas for cost reduction. The other steps in ABC involve identifying activities and their associated cost drivers, as well as computing cost rates.

The Last Step in Activity-Based Costing (ABC)is to