Question 1
Which of the following is
not a step in implementing an activity-based costing system?
◦ Calculating predetermined overhead rates
◦ Identifying activities
◦ Calculating the unit product cost
◦ Developing activity cost pools
Question 2
Identifying activities performed in the organization is the first step in developing activity-based product costs. Which of the following is a way to identify these activities?
◦ Asking employees what they do
◦ Analyzing industry averages
◦ Determining cost pools
◦ Investigating variances