Which of the following is not a step involved in activity-based costing?
A) Identify the activities that consume resources and assign costs to those activities.
B) Determine how to reduce the costs of making products by cutting activities.
C) Assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by the product.
D) Compute a cost rate per cost driver unit or transaction.

Question

Quizplus · Accepted Answer

Activity-based costing focuses on accurately assigning costs to products based on activities, not on reducing costs by cutting activities.

Which of the Following Is Not a Step Involved in Activity-Based