What is the initial step in implementing an activity-based costing system?
A)assigning costs to activities
B)assigning costs to products
C)identifying activities and attributes
D)dividing activity costs by activity drivers

Question

Quizplus · Accepted Answer

The initial step in implementing an activity-based costing system is to identify the activities and attributes associated with producing and delivering a product or service. This involves analyzing the organization's processes and determining what activities are necessary to produce the goods or services. Once the activities have been identified, the costs can be assigned to them and the activity drivers can be determined in order to allocate the costs to the products or services.

What Is the Initial Step in Implementing an Activity-Based Costing