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.

Q: Under activity-based costing, selling and administrative expenses may be allocated using which of…

A: Budgeted activity cost is the budgeted cost prepared by the company that would be incurred on…

Q: Who of the following is an activity-based pricing limitation? Each important action accumulates…

A: Activity based pricing is method where cost is allocated basis the cost drivers.  ABC systems…

Q: How can the activity rates (i.e., cost per activity) for the various activities be used to target…

A: ABC is a costing technique under which the cost of a product is calculated according to the number…

Q: Describe the two-stage allocation process for assigning support service costs to products in…

A: The method involves identifying and allocating costs to multiple cost objects known as cost…

Q: There are two types of costs originating from the modern agency problem: direct costs and indirect…

A: Costs The expenditure incurred on that is imputable to ascertain the value of a given item is…

Q: Allocate the support department costs to the production departments using the direct method.

A: Solution:- Janitorial department total cost = $310,000 Total square of production department…

Q: 1.An activity that has a direct cause-effect relationship with the resources consumed is a(n) Group…

A: In activity based costing the cost are apportioned based on the respective cost drivers

Q: Which of the following statements about ABC is not correct? answer choices When forming activity…

A: Answer:-  Activity-based costing (ABC)= Activity-based costing (ABC) is a kind of method of costing…

Q: Calculate the cost allocation base per customer.   Compute the appropriate cost drivers for the…

A: solution : let us first note down the indirect costs Energy cost 4200 Machine and…

Q: Under activity-based costing, second stage allocation would involve: O a. Defining activity measures…

A: Steps involved in Activity-based costing - Step 1 - identify and classify the activities involved…

Q: Explain the relationship between the costs of flexible and committed resources, usage of resources,…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: Using the step method to allocate the service center costs, what is the total cost of programming…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Activity-based-costing *   a. allocates overhead to multiple activity cost pools, and it then…

A: Activity-based costing: Activity based costing is the method of costing which is used to assign…

Q: In order to determine product costs, JIT firms are usually structured so they can use: a.joint…

A: See the answer below:

Q: List three factors that are important in selecting cost drivers for an ABC system.

A: Cost driver: It is one of the measurements that help the company in tracing directly the number of…

Q: How to allocate indirect costs to multiple departments using an ABC costing driver?

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Which of the following statements is true with regard to activity-based costing?   Multiple Choice…

A: The overhead is applied to the production using various methods as traditional costing and activity…

Q: QUESTION 9 Put the following steps in an Activity-Based-Costing system in the proper order. v…

A: Cost Accounting: Cost accounting is characterized as "a methodical arrangement of methodology for…

Q: Which of the following is referred to as the second stage of cost allocation? O The allocation of…

A: Cost allocation is the assigning and allocating the cost to the specific objects, departments,…

Q: Under activity-based costing, second stage allocation would involve: a. Calculating activity rates O…

A: ABC costing: Here the costs of products are to be allocated by the activities using cost pools. It…

Q: need distrebution the cost of service centers to the production center.

A: Overhead is the cost that is directly involved in the production process of the company. It is…

Q: Indicate whether the following statement is true or false, then support your view. By using a…

A: Traditional method of costing is the method of allocating overheads based on the single cost driver.…

Q: Identify the output and input variables in both the bottom-up and top-down strategies to cost…

A: Bottom ups of the cost estimate are the most accurate cost estimation process wherein every minute…

Q: Describe the key steps of resource assignment and cost assembly via eTakoff and Sage Estimating.

A: Sage Estimating is an ERP tool that gives you the flexibility, speed, and accuracy to generate…

Q: In Activity-based costing, activity measures may include all of the following except: O a. All of…

A: Activity  based costing  allocates the overhead  costs on basis of cost drivers/activity  driver

Q: Discuss the history of ABC method (Use references if you use any) Define the following with…

A: Activity-based costing a method of assigning overheads based on usage of a particular activity. It…

Q: What are the four steps to developing an activity-based costing system?

A: Activity-based costing (ABC):   Activity based costing (ABC) framework was created to manage the…

Q: Explain briefly why plant-wide, department, and activity-based costing systems show different costs…

A: Plant-wide: Under the plant-wide system, a single rate is used to allocate or assign entire…

Q: What is the proper order of tasks in an ABC system?   a.identify the cost pools, identify the cost…

A: Under ABC costing, the overhead is applied to production one the basis of different activities being…

Q: activity-based costing

A: Activity based costing refers to the method of costing assigning cost of activity to all the…

Q: Under activity-based costing, second stage allocation would involve: O a. Defining activity measures…

A: Activity-based costing is a method of costing system which focuses on activities. In this method of…

Q: Describe three criteria for evaluating cost functions and choosing cost drivers.

A: Cost Function:   Cost function represents the basic change comes in the total cost due to the change…

Q: Which of the following is a benefit of activity-based cost management system? a.It makes it easy to…

A: Activity based costing is a method of allocating indirect costs to the products or services based on…

Q: Which of the following statements is true? When designing an activity-based costing system, related…

A: Activity based costing is a type or method of costing that is used for allocation of all indirect…

Q: Which of the following is NOT true about a resource cost driver under Activity based costing? a.…

A: The drivers that are used in the activity-based costing to assign the costs so that the overall cost…

Q: “To ensure unbiased cost allocations, fixed costs should be allocated on the basis of estimated…

A: Cost:   It is the monetary value incurred by a company to produce a product or a service.

Q: Under activity -based costing , second stage allocation would involve a. Calculating activity rates…

A: Activity based costing system is a costing system which assigns costs on the basis of activities and…

Q: Which of the following statements is true with regard to activity-based costing? Multiple Cholce…

A: Activity-based costing is a method of costing that identify activities in an business and assigns…

Q: Contrast the productcosts computed under activitybased costing and conventionalcosting methods

A: ABC Costing: The Activity-Based costing system is a way of assigning a cost to the product and…