An activity analysis is used to _____.
A)identify relevant costs for decision making
B)classify costs
C)choose an appropriate cost driver
D)predict future costs

Question

Quizplus · Accepted Answer

An activity analysis is a method used to identify appropriate cost drivers for different activities, which can then be used to allocate costs and determine the cost of products or services. It is used as a tool for cost management and cost control. Identifying relevant costs for decision making, classifying costs, and predicting future costs are not the primary purposes of activity analysis.

An Activity Analysis Is Used to _____