Which of the Following Is Performed First in Setting Up

question 65

Multiple Choice

Which of the following is performed first in setting up an ABC system?

• A) Identify relevant cost objects
• B) Assign costs to the costs pools
• C) Identify activities that are part of the manufacturing or service delivery process
• D) Allocate activity costs to the cost objects

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Definitions:

AASB 11

An accounting standard that sets out the financial reporting requirements for entities that have an interest in arrangements that are controlled jointly (joint arrangements).

Joint Control

A situation where the strategic financial and operating policy decisions of a business arrangement are determined by unanimous consent of the parties sharing control.

Unilateral Control

The power exerted by one entity over another without the need for mutual agreement or cooperation.

Strategic Operating Decisions

Decisions that affect the overall direction and operations of a company, focusing on long-term goals and objectives.