PD Company has reengineered its production process and should now review and potentially revise its activity-based costing system.

Question

Quizplus · Accepted Answer

Activity-based costing system is often used to allocate costs to specific activities or processes within a company. Therefore, if the production process has been reengineered, it is possible that the activities and costs associated with each activity may have changed. As a result, PD Company may need to review and revise its activity-based costing system to ensure accurate cost allocation.

PD Company Has Reengineered Its Production Process and Should Now