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 expensive
B)activity-based systems are more complex
C)activity-based systems classify more costs as direct
D)All of these answers are correct

Question

Quizplus · Accepted Answer

Activity-based systems classify more costs as direct, which allows for a more accurate allocation of costs. This leads to greater confidence in the accuracy of reported costs. The other options, being more expensive or complex, do not necessarily lead to greater accuracy.

Managers Have Greater Confidence in the Accuracy of Costs of Products