In a time-driven ABC system,what is the next step after managers calculate the cost of per time unit of supplying resources to activities?
A)determining how long an employee takes to do an activity
B)assigning the costs of a department's resources to the customer who uses the services
C)determining the time it takes to carry out one unit of each kind of activity
D)attempting to estimate practical capacity

Question

Quizplus · Accepted Answer

After calculating the cost of per time unit of supplying resources to activities in a time-driven ABC system, the next step is to determine the time it takes to carry out one unit of each kind of activity. This involves measuring the time required to perform the activity and using that data to derive the cost of each activity unit. This information is necessary to calculate the total cost of producing a product or delivering a service. Determining how long an employee takes to do an activity or attempting to estimate practical capacity are relevant steps in the process but come after determining the time it takes to carry out one unit of each kind of activity. Assigning the costs of a department's resources to the customer who uses the services may also come later in the process.

In a Time-Driven ABC System,what Is the Next Step After