What does the design of an ABC system require?
A)That a cause-and-effect relationship exists between resource costs and individual activities
B)That the job bid process be redesigned
C)An adjustment to product mix
D)Both B and C are correct.

Question

Quizplus · Accepted Answer

The design of an Activity-Based Costing (ABC) system requires identifying the activities that consume resources and assigning costs to them based on a cause-and-effect relationship. This is necessary to accurately allocate costs to products, services, or customers and make informed decisions. Option B and C are not required for designing an ABC system.

What Does the Design of an ABC System Require