Rank the following steps in the order in which they would be completed
1. Activity-based costing requires four steps.
Requirement
R1. Rank the following steps in the order in which they would be completed.
Number the first step as “1” until you have ranked all four steps.
a. Compute the cost allocation rate for each activity.
b. Identify the cost driver for each activity and estimate the total quantity of each driver’s allocation base.
c. Allocate indirect costs to the cost object.
d. Identify each activity and estimate its total indirect cost.
Hint
"The four steps involved in the activity-based costing method are1) Identify the activities that consume resources & assign costs to these activities.2) Identify the cost drivers related to each activity.3) Compute the cost rate per the cost driver unit.4) Assign costs to products"...
Login | Sign Up
