Activity-based costing involves four steps: (1)identify activities and the costs they cause,(2)group similar activities into cost pools,(3)determine an activity rate for each activity cost pool,and (4)allocate overhead costs to products using those activity rates.

Question

Quizplus · Accepted Answer

This is the correct four-step process for activity-based costing.

Activity-Based Costing Involves Four Steps: (1)identify Activities and the Costs