The first step in designing an activity-based costing system is to identify activities.

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The first step in designing an activity-based costing system is to identify activities. This involves identifying all the tasks or processes that are required to produce a product or service, and then determining the cost drivers that are associated with each activity. Once activities and cost drivers have been identified, costs can be assigned to products or services based on their actual consumption of the different activities.

The First Step in Designing an Activity-Based Costing System Is