The first stage in activity-based costing is to:
A. multiply the total cost of producing each good by the number of goods.
B. identify specific activities that create indirect costs and determine the factors that drive the costs of these activities.
C. divide the total cost of goods available for sale by the total units available for sale.
D. identify specific activities that create direct costs and determine the marketing factors that influence the costs of these activities.
Answer: B
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