When implementing an ABC system, the accounting information system may require modifications to
A) Include fewer ledger accounts
B) Include only costs from the most recent periods
C) Gather and report activity and cost driver information
D) Do all of the above

Question

Quizplus · Accepted Answer

Implementing an activity-based costing (ABC) system requires gathering and reporting activity and cost driver information, as this is the basis of the system. The accounting information system may require modifications to include this information, but it would not require including fewer ledger accounts or only using costs from the most recent periods. Therefore, the best choice is C.

When Implementing an ABC System, the Accounting Information System May