ABC systems focus on accumulating costs into key activities, rather than into organizational units.

Question

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ABC (Activity-Based Costing) focuses on identifying key activities and assigning costs to them, rather than simply allocating costs to departments or organizational units. By understanding the costs associated with each activity, organizations can more accurately determine the true cost of their products or services and make informed decisions about pricing, process improvements, and resource allocation.

ABC Systems Focus on Accumulating Costs into Key Activities, Rather