Activity-based costing generally requires less effort to implement and maintain than a traditional cost system.

Question

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Activity-based costing (ABC) requires more effort to implement and maintain than a traditional cost system. ABC involves identifying and analyzing the activities that drive costs, which can require significant data gathering and analysis. However, ABC is often seen as more accurate and useful in allocating costs to products or services.

Activity-Based Costing Generally Requires Less Effort to Implement and Maintain