alleryStart learning →In the five stages of activity-based costing, activity rates are calculated for each:
ATax filing
BBank draft
CCost pool
DCost payer
Answer & Solution
Correct answer: C. Cost pool
1. Stage two gathers costs into pools.
2. Stage three then calculates activity rates for each cost pool.
3. Each pool gets its own rate rather than sharing one plant-wide rate.
4. So the rate is per cost pool.
_Source: OpenStax Principles of Accounting Volume 2, Managerial Accounting (CC BY-NC-SA 4.0), Ch 6 'Activity-Based, Variable, and Absorption Costing', sections 6.1-6.5_
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