The steps that a company, using a traditional cost system, would take to implement activity$-$based costing include:

I.

Evaluation of the existing system to assess how well the system supports theobjective of an activity$-$based cost system.

II$.$

Identification of the activities for which cost information is needed with differentiationbetween value adding and non$-$value adding activities.

A

$.$

Both I and II$.$

B

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Neither I nor II$.$

C

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Only II$.$

D

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Only I.