Managers have greater confidence in the accuracy of costs of products and services reported by activity- based systems because:
A) activity- based systems are more complex
B) activity- based systems are more expensive
C) activity- based systems classify more costs as direct
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Activity-based systems provide more accurate cost information by classifying more costs as direct, which reduces the allocation of indirect costs and improves cost tracing.

Managers Have Greater Confidence in the Accuracy of Costs of Products