In designing an activity-based cost accounting system,what is the first step?
A) Collect data about costs and the physical flow of the cost-driver units.
B) Determine the relationships among cost objects, activities, and resources.
C) Determine the key components of the activity-based cost accounting system.
D) Calculate and interpret the new activity-based cost information.

Question

Quizplus · Accepted Answer

The first step in designing an activity-based cost accounting system is to determine the key components of the system, which involves understanding the overall framework and objectives before collecting data or analyzing relationships.

In Designing an Activity-Based Cost Accounting System,what Is the First