LO 6.3What is the proper order of tasks in an ABC system?

identify the cost drivers, assign the costs to the products, calculate the overhead application rate for each cost pool, identify the cost pools
assign the costs to the products, identify the cost drivers, calculate the overhead application rate for each cost pool, identify the cost pools
identify the cost drivers, identify the cost pools, calculate the overhead application rate for each cost pool, assign the costs to the products
identify the cost pools, identify the cost drivers, calculate the overhead application rate for each cost pool, assign the costs to the products

Respuesta :

Answer:

Please see the naswer below

Explanation:

Activity-based costing ABC is a method for assigning costs to products, services projects, tasks, or acquisitions, based on the Activities that go into them  and the Resources consumed by these activities. Following is the proper order of tasks in an ABC system

1. Identify the primary activities and estimate a total cost pool for each.

2.Select an allocation base for each activity.

3.Calculate an activity cost allocation rate for each activity.

4. Allocate the costs to the cost object using the activity cost allocation rates.