Collecting relevant data concerning costs and the physical flow of the cost-driver units among resources and activities is the third step of design of an ABC system.

Question

Quizplus · Accepted Answer

This statement is true. The third step of designing an ABC system is collecting relevant data about the physical flow of cost-driver units among resources and activities, as well as the costs associated with each resource and activity. This data is then used to create cost pools and allocate costs to products or services based on their consumption of resources and activities.

Collecting Relevant Data Concerning Costs and the Physical Flow of the Cost-Driver