What is the 7-step process of ABC costing?

1. Identify the chosen cost objects. 2. Identify the direct costs of the product. 3. Select the cost-allocation bases to use in allocating indirect costs to the products. 4. Identify the indirect costs associated with each cost-allocation base. 5. Compute the rate per unit of each cost allocation base used to allocate indirect costs to the products. 6. Compute the indirect costs allocated to the products. 7. Compute the costs of the products by adding all direct and indirect costs assigned to them.