Put the following ABC implementation steps in order: A Compute the allocation rates. B Compute the total cost of the products. C Identify the products that are the cost objects. D Select the cost allocation bases.

D Select the cost allocation bases.

Explanation:

An allocation base OR cost allocation based is the foundation on which Cost accounting apportions the overhead costs. An allocation base can come inform of a quantity, such as the used machine hours, the consumed electricity kilowatt hours (kWh), or the square footage that is being occupied.

the ABC implementation step in order will be to select the cost allocation bases.

The ABC steps in order is Option C, D, A, B

1. C) Identify the products that are the cost objects.

2. D) Select the cost allocation bases.

3. A) Compute the allocation rates.

4. B) Compute the total cost of the products

Explanation:

ABC Costing is a supplemental method of cost accounting that provides the decision-making information absent from traditional costing methods. While ABC costing is not limited by business unit boundaries, it can not fully supplant traditional costing methods as it often fails to meet financial reporting requirements for businesses.

ABC Costing focuses on costs contributing to production of a product. It does not attribute other general costs that do not have at least an indirect relationship to the product. While traditional costing systems focus on direct costs and burden a product with other fixed costs, activity based costing increases accuracy of indirect cost assignment.

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