An activity-based costing system with many activities can become overly detailed and unwieldy to operate.

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Quizplus · Accepted Answer

This is because a large number of activities increase the complexity of the system and require more resources to manage and maintain. It can also lead to confusion and errors in the allocation of costs, making the system less reliable and useful for decision-making. Therefore, it is important to carefully select and prioritize the activities included in the costing system to ensure its effectiveness and practicality.

An Activity-Based Costing System with Many Activities Can Become Overly