Which of the following steps is not involved in the ABC approach?
A)Identify activities that cause costs to be incurred.
B)Allocate costs to products based on activity usage.
C)Group costs of activities into cost pools.
D)Improve processes based on benchmarking.

Question

Quizplus · Accepted Answer

Improving processes based on benchmarking is not a step involved in the ABC approach. The other three steps, i.e., identifying activities that cause costs to be incurred, grouping costs of activities into cost pools, and allocating costs to products based on activity usage, are all important components of the ABC approach.

Which of the Following Steps Is Not Involved in the ABC