Accountants need to consider cost benefit trade-offs when choosing activities and cost drivers in an ABC system.

Name: Accountants need to consider cost benefit trade-offs when choosing activities and cost drivers in an ABC system.
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Question

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In Activity-Based Costing (ABC) systems, accountants must evaluate the costs and benefits of selecting specific activities and cost drivers to ensure that the information gained justifies the costs of implementation.

Accountants Need to Consider Cost Benefit Trade-Offs When Choosing Activities