Which of the following is not a basic step that is used to determine the cost of goods using Activity-Based Costing?
A) Identify and classify the activities related to the company's products
B) Calculate a cost-driver rate for each activity
C) Classify all costs into variable and fixed cost behavior
D) Assign activity costs to products

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) focuses on identifying activities and assigning costs to products based on their consumption of those activities. Classifying all costs into variable and fixed cost behavior is not a step in ABC; instead, it's more related to traditional cost accounting methods.

Which of the Following Is Not a Basic Step That