Identifying activities performed in the organization is the first step in developing activity-based product costs.Which of the following is a way to identify these activities?
A)Asking managers about product profitability
B)Observe what employees do
C)Separate costs into cost pools
D)Perform first-stage allocation

Question

Quizplus · Accepted Answer

Observing what employees do is a way to identify activities performed in the organization, which is the first step in developing activity-based product costs. Asking managers about product profitability, separating costs into cost pools, and performing first-stage allocation are all steps in the activity-based costing process, but they do not directly identify the activities themselves.

Identifying Activities Performed in the Organization Is the First Step