Which of the following is not part of the process used to assign costs in an ABC system?
A) Identify activities
B) Differentiate value-adding and non-value-adding activities
C) Identify the relevant cost object
D) Assign costs to activity-based pools

Question

Quizplus · Accepted Answer

Differentiating value-adding and non-value-adding activities is not a direct part of assigning costs in Activity-Based Costing (ABC) systems. ABC focuses on identifying activities, determining cost drivers, and assigning costs to activity cost pools based on those drivers. The differentiation between value-adding and non-value-adding activities is more related to process improvement and efficiency analysis rather than the direct assignment of costs.

Which of the Following Is Not Part of the Process