Determining the key components of the Activity-Based Cost system is the first step of design of an ABC system.

Question

Quizplus · Accepted Answer

Determining the key components of the Activity-Based Cost system is indeed the first step in designing an ABC system. This involves identifying the activities that consume resources and the cost drivers that cause those activities, as well as developing a cost hierarchy to categorize costs according to the level of activity they relate to.

Determining the Key Components of the Activity-Based Cost System Is