The first step in developing an ABC system is to:
A) allocate costs to activity cost pools.
B) identify the cost driver that has the best "cause and effectcause-and-effect relationship" to the cost pool.
C) identify essential activities and the cost of performing those activities.
D) calculate activity rates.

Question

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The first step in developing an ABC system is to identify essential activities and the costs of performing those activities.

The First Step in Developing an ABC System Is To