In developing an ABC system, what is the last step? Identify the primary activities and estimate a total cost pool for each. Select an allocation base for each activity. Allocate the costs to the cost object using the activity cost allocation rates. Calculate an activity cost allocation rate for each activity.
In developing an ABC system, what is the last step? Identify the primary activities and estimate a total cost pool for each. Select an allocation base for each activity. Allocate the costs to the cost object using the activity cost allocation rates. Calculate an activity cost allocation rate for each activity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In developing an ABC system, what is the last step?
- Identify the primary activities and estimate a total cost pool for each.
- Select an allocation base for each activity.
- Allocate the costs to the cost object using the activity cost allocation rates.
- Calculate an activity cost allocation rate for each activity.
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