When activity$-$based costing is applied to administrative activities, a four$-$step process is used. The four steps, in random order, are:

Identify the cost driver associated with each activity.

Identify the activities that consume resources.

Assign costs to the marketing or administration activity by multiplying the cost driver rate by the volume of cost driver units consumed for that activity.

Compute a cost rate per cost driver for each unit or transaction.

The correct order in which these steps should be taken is:

Multiple Choice

II$,$ I, IV$,$ III

II$,$ IV$,$ I, III

III, II$,$ IV$,$ I

None of these choices are correct.

I, II$,$ III, IV