The First Step in Developing an ABC System Is To

question 92

Multiple Choice

The first step in developing an ABC system is to:

• A) allocate costs to activity cost pools.
• B) identify the cost driver that has the best "cause-and-effect relationship" to the cost pool.
• C) identify essential activities and the cost of performing those activities.
• D) calculate activity rates.

---

Definitions:

Synonym Definition

Describes a term that has the same or nearly the same meaning as another term.

Ambivalence

Mixed feelings or contradictory attitudes towards someone or something.

Topic Sentence

The sentence that expresses the main idea of a paragraph, usually placed at the beginning to guide the reader's understanding of the subsequent content.

Definition By Negation

Defining a concept by describing what it is not, instead of detailing its characteristics.