The second step in Activity-based costing (ABC)is to identify the cost driver(s)associated with each activity.Cost drivers usually relate to
A)volume of production.
B)hours used in production.
C)marketing process.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

Cost drivers vary based on the activity being performed. For example, cost drivers for production activities may be the number of machine hours used, while cost drivers for marketing activities may be the number of sales calls made. Therefore, all of the answers are correct, as different activities will have different cost drivers.

The Second Step in Activity-Based Costing (ABC)is to Identify the Cost