The accuracy of ABC systems may be reduced if employees provide misleading or incorrect information.

Name: The accuracy of ABC systems may be reduced if employees provide misleading or incorrect information.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) systems rely on accurate and truthful input data regarding the activities and resources used. If employees provide misleading or incorrect information, it can lead to inaccurate cost allocation and distort the system's outputs.

The Accuracy of ABC Systems May Be Reduced If Employees