Which of the following is the step in implementing an activity-based costing system that can generate the greatest error?
A)Identifying activities
B)Developing activity cost pools
C)Calculating activity cost pool rates
D)Calculate the unit product cost

Question

Quizplus · Accepted Answer

Identifying activities is the step in implementing an activity-based costing system that can generate the greatest error because if activities are not correctly identified, all subsequent steps, including the allocation of costs and the calculation of activity rates, will be based on incorrect or incomplete information, leading to inaccurate costing and decision-making.

Which of the Following Is the Step in Implementing an Activity-Based