The first step in implementing an activity-based costing system begins with
A)developing activity cost pools.
B)identifying activities.
C)calculating activity cost pool rates.
D)calculate the unit product cost.

Question

Quizplus · Accepted Answer

The first step in implementing an activity-based costing system is to identify the activities that consume resources and add value to the product or service. Only after identifying the activities can the cost pools and rates be developed and the unit product cost calculated.

The First Step in Implementing an Activity-Based Costing System Begins