What Is the First Step in the Seven-Step Guideline for ABC

Multiple Choice

What is the first step in the seven-step guideline for ABC systems?

A) Identify and trace the direct costs to the cost objects (outputs) .
B) Identify the outputs that are represented by cost objects.
C) Identify and select the activities,associated activity-cost drivers and activity-cost pools to allocate the costs to outputs.
D) Identify the indirect costs for each resource-cost pool and associated resource-cost drivers to allocate the costs to activity-cost pools.