Question

LO 6.3Which is not a step in activity-based costing?

identify the activities performed by the organization
identify the cost driver(s) associated with each activity
compute a cost rate per production
assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product

Answer 1

Computing a cost rate per production is not part of activity based costing

Explanation: The cost rate per production is computed in the traditional Absorption costing to allocate the overhead costs to unit products.