In the first step in developing an activity-based costing system for a manufacturing company,the management team must determine the activities that incur the majority of the manufacturing overhead costs.

Question

Quizplus · Accepted Answer

This statement is true as identifying the activities that incur the majority of manufacturing overhead costs is the first step in developing an activity-based costing system. This allows for a more accurate allocation of costs to products or services.

In the First Step in Developing an Activity-Based Costing System