The first step in implementing an activity-based costing system begins with
A)developing activity cost pools.
B)identifying activities.
C)calculating activity cost pool rates.
D)calculate the

Question

Quizplus · Accepted Answer

The first step in implementing an activity-based costing system is identifying activities. This involves identifying all of the activities that are performed within an organization and linking those activities to the costs that are associated with them. Once the activities have been identified, the next step is to develop activity cost pools, calculate activity cost pool rates, and then assign costs to products or services based on the activities that are involved in their production or delivery.

The First Step in Implementing an Activity-Based Costing System Begins