The First Step in Developing an ABC System Is

question 9

Multiple Choice

The first step in developing an ABC system is

• A)calculate an activity cost allocation rate for each activity.
• B)allocate the costs to the cost object using the activity cost allocation rates.
• C)select an allocation base for each activity.
• D)identify the primary activities and estimate a total cost pool for each.

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Definitions:

Technical Specifications

Detailed information and criteria about the technical aspects that a product or project must meet.

Technical Feasibility

The assessment of a project's technical aspects to ensure it is possible to design and implement within the available resources and technology.

Communications Components

The fundamental parts that make up a communication system, including the sender, message, medium, receiver, and feedback mechanisms.

Business Problem

A challenge or issue faced within a business or organization that requires a solution to improve outcomes, processes, or efficiency.