Question

Alphite Corporation produces bricks and cinder blocks based on customer orders. The manager has considered adopting activity-based costing; however, she has decided that it would be more cost-effective to use a single allocation base. In which step of the decision-making process would a manager make a decision to group all budgeted indirect costs in a single cost pool

Answer 1

Answer:

b. Step 3

Explanation:

In the step 3 of the decision making process when the manager would make a decision with respect of grouing all predicted indirect cost in a single cost pool so the same would be classfied in the step 3 of the decision making process

As step 1, step 2 and step 4 would deals in identification of products for selecting cost object, identification of direct cost that attached with every product and identification of indirect cost for each & every cost allocation base