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 employees what they do
B)Observe what employees do
C)Both asking employees what they do and observing what employees do
D)Neither asking employees what they do nor observing what employees do

Question

Quizplus · Accepted Answer

The best way to identify activities performed in the organization is by both asking employees what they do and observing what employees do. This will provide a comprehensive view of the activities performed by the organization which can then be used to develop activity-based product costs.

Identifying Activities Performed in the Organization Is the First Step