Question

The process of identifying appropriate cost drivers and their effects on producation and service costs is called

Answer 1

The process of identifying appropriate cost drivers and their effects on production and service costs is called Activity Analysis.

Explanation:

• Activity analysis provide all the necessary information about how the task is performed and what types of physical and mental activities were involved.
• It identifies the functioning of cost drivers and their possible effects on the production, task frequency and allocation.

Learn more about task analysis

What is a task analysis?

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