Which of the following is the first step in Activity-Based Costing?
A) Assign activity costs to products
B) Identify and classify activities related to the company's products
C) Calculate a cost-driver rate for each activity
D) Estimate the cost of activities

Question

Quizplus · Accepted Answer

The first step in Activity-Based Costing (ABC) is to identify and classify the activities that are involved in the production or delivery of a company's products or services. This step is crucial for understanding how resources are consumed and for later assigning costs more accurately.

Which of the Following Is the First Step in Activity-Based