Question

During the ____________step in activity-based costing, overhead costs in each activity cost pool are assigned to products.

a. first
b. second
c. third
d. fourth

Answer 1

d. fourth

Step-by-step explanation:

Activity-based costing involves the following steps:

-First step: establish the activities that use resources and assign the costs to them.

-Second step: identify what causes the costs in each activity and this would be the allocation base.

-Third step: find an activity rate.

-Fourth step: assign costs to the products according to the activity usage by the product.

According to this, the answer is that during the fourth step in activity-based costing, overhead costs in each activity cost pool are assigned to products.