The Steps to Assign Costs in an ABC System Are

Essay

The steps to assign costs in an ABC system are listed below in random order. Number the steps in the correct order (1 through 6).
____ Assign costs to activity-based cost pools
____ Calculate an allocation rate for each cost pool
____ Choose a cost driver for each cost pool
____ For each ABC cost pool, allocate activity costs to the cost object
____ Identify activities
____ Identify the relevant cost object