Measuring the costs of current process activities involves five steps. Which of the following is the first step?
A) Identify cost driver bases and measure activity cost driver rates
B) Assign activity costs to products, jobs or services by multiplying the use of cost driver base by the cost driver rate
C) Identify and measure the different levels of resource spending
D) Measure the costs of individual activities

Question

Quizplus · Accepted Answer

The first step in measuring the costs of current process activities is to identify and measure the different levels of resource spending. This step is foundational as it involves understanding where and how resources are being consumed before proceeding to more detailed analysis and allocation steps.

Measuring the Costs of Current Process Activities Involves Five Steps