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 in the production process. Only after identifying the activities can cost pools be developed and activity cost pool rates be calculated. Therefore, option B - identifying activities - is the best choice.

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