What Is the First Step in Developing an ABC System

question 7

Multiple Choice

What is the first step in developing an ABC system?

• A)Identify the primary activities and estimate a total cost pool for each.
• B)Allocate the costs to the cost object using the activity cost allocation rates.
• C)Select an allocation base for each activity.
• D)Calculate an activity cost allocation rate for each activity.

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Definitions:

Malignant

A type of tumor or neoplasm that is invasive and destructive and that tends to metastasize; it is commonly known as cancerous.

Cardiology

A branch of medicine dealing with disorders of the heart and blood vessels.

Ultrasonography

Ultrasonography is a diagnostic imaging technique that uses high-frequency sound waves to create visual images of organs, tissues, or blood flow inside the body.

Blood Vessels

The network of tubes in the body through which blood flows, including arteries, veins, and capillaries.