Which of the following is not a step in activity based costing?
A)Identify the departments that consume resources and assign costs to those departments.
B)Identify the cost drivers associated with each activity.
C)Compute a cost rate per cost driver unit.
D)Assign cost to products by multiplying the cost driver rate times the volume of cost driver consumed by the product.

Question

Quizplus · Accepted Answer

Identifying departments that consume resources and assigning costs to those departments is a step in traditional costing methods, not activity-based costing. Activity-based costing identifies and assigns costs to activities that consume resources, not departments.

Which of the Following Is Not a Step in Activity