Design of an activity-based cost system requires that:
A)the job bid process be redesigned.
B)resource costs be linked to the activities performed.
C)the cost of activities be linked to cost objects.
D)resource costs be linked to the activities performed and the cost of activities be linked to cost objects.

Question

Quizplus · Accepted Answer

Designing an activity-based cost system involves linking resource costs to the activities performed and then linking the cost of activities to cost objects. This process enables organizations to accurately allocate costs to products, services, or other cost objects based on the activities required to produce or deliver them. Redesigning the job bid process may be necessary to support this cost system, but it is not the primary requirement.

Design of an Activity-Based Cost System Requires That