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:

Wiring Gauge

A measurement of the diameter of electrical wire, determining its current-carrying capacity and resistance.

Operating Load

The average workload or stress placed on a machine or system during normal operation.

Articulation Points

In graph theory, points that, if removed, increase the number of connected components, indicating critical points in structural or network designs.

A-Train Combination

A specific truck combination consisting of a tractor unit connected to two trailers linked by a dolly, arranged in a format resembling the letter 'A'.