What Is the Initial Step in Implementing an Activity-Based Costing

question 15

Multiple Choice

What is the initial step in implementing an activity-based costing system?

• A)assigning costs to activities
• B)assigning costs to products
• C)identifying activities and attributes
• D)dividing activity costs by activity drivers

---

Definitions:

Trend Toward Bigness

Describes the economic phenomenon where companies and organizations grow larger, often through mergers, acquisitions, or increased market share, affecting competition and market dynamics.

Civil War

An intense conflict between factions or regions within the same country, where opposing groups fight for control, autonomy, or specific changes in policy.

Major Setback

A significant or substantial problem, failure, or delay that prevents progress or the achievement of objectives, often requiring considerable effort to overcome.

Consolidation

The process of combining multiple companies, assets, or financial statements into a single entity, often to achieve greater efficiency, market share, or financial stability.