Managers Can Use Steps as a Tool in Simple Costing

Multiple Choice

Managers can use steps as a tool in simple costing systems when they have a single indirect cost pool because it helps them to allocate indirect costs using a single indirect-cost rate.Which of the following is not one of the steps to guide them in this process?

A) Identify the Products that are the Chosen Cost Objects.
B) Identify the Direct Costs of the Products.
C) Select the Cost-Allocation Bases to use for Allocating Indirect (or Overhead) Costs to the Products.
D) Identify the Indirect Costs Associated with Each Cost-Allocation Base.
E) Application of the Five-Step Decision Making Platform.