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?

a. Asking employees what they do

b. Analyzing industry averages

c. Both asking employees what they do and analyzing industry averages.

d. Neither asking employees what they do nor analyzing industry averages.

Question

Business

Morgan Newton

9 March, 01:47

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?

a. Asking employees what they do

b. Analyzing industry averages

c. Both asking employees what they do and analyzing industry averages.

d. Neither asking employees what they do nor analyzing industry averages.

+2

Answers (1)

Know the Answer?

Jimmy Ho · Answer 1

Both asking employees what they do and analyzing industry averages

Explanation:

For effective results in identifying these activities, one needs to critically analyze existing industry averages and also, organize an inquiry routine for each employee to gain grounded understanding of the activities being executed.