Which of the following is not a step in activity based costing?
A)Identify the activities that consume resources and assign costs to those activities.
B)Identify the cost drivers associated with each activity.
C)Compute a cost rate per department or plant.
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

Activity based costing does not involve computing a cost rate per department or plant. Instead, it focuses on identifying and assigning costs to specific activities, and then assigning those costs to products based on the volume of cost driver consumed by each product.

Which of the Following Is Not a Step in Activity