The First Step in Developing an Activity-Based Costing System Is

question 257

True/False

The first step in developing an activity-based costing system is to identify the activities that will be used to allocate the manufacturing overhead costs.

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Definitions:

Factor

A finance company to which businesses sell their accounts receivable—usually for a percentage of the total face value.

Prime Rate

The interest rate that commercial banks charge their best customers (usually large corporations) for short-term loans.