25. Designing an activity-based cost system includes: A) classifying as many cos

Question

25. Designing an activity-based cost system includes:
A) classifying as many costs as indirect costs as is feasible.
B) creating as many cost pools as possible.
C) identifying the activities performed by the plant's resources.
D) seeking a broader focus rather than detail.

26. Design of an activity-based cost system requires that:
A) the job bid process be redesigned.
B) resource costs be linked to the activities performed.
C) the cost of activities be linked to cost objects.
D) resource costs be linked to the activities performed and the cost of activities be linked to cost objects.

Explanation / Answer

A) classifying as many costs as indirect costs as is feasible.

B) resource costs be linked to the activities performed.

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