If a Firm Uses Activity-Based Costing to Allocate Costs, It

Multiple Choice

If a firm uses activity-based costing to allocate costs, it does all but which of the following?

A) Combine homogeneous costs in appropriate pools.
B) Calculate an appropriate rate for each pool.
C) Select appropriate cost drivers.
D) Apply a volume-related measure per unit of product.
E) Allocate costs based on predetermined rates for cost pools.