Activity analysis is an important approach to operations control and the successful implementation of an activity-based costing (ABC)system.Which of the following procedures is not part of activity analysis?
A) Chart,from start to finish,the activities used to complete the product or service.
B) Classify all activities as either value-added or nonvalue-added activities.
C) Identify the process objectives as defined by what the customer desires from the process.
D) Compute the predetermined rate per activity by dividing the total cost pool by the total cost drivers.

Question

Quizplus · Accepted Answer

Computing the predetermined rate per activity by dividing the total cost pool by the total cost drivers is actually part of the process of implementing an activity-based costing (ABC) system, but it is not a part of activity analysis. Activity analysis involves charting and classifying activities, as well as identifying process objectives based on customer desires.

Activity Analysis Is an Important Approach to Operations Control and the Successful