A critical component of an activity-based accounting system is
A)the ability to accurately measure activities that consume cost.
B)few areas in the facility that capture costs.
C)the ability to eliminate non-value-added activities.
D)flexible job-order costing information.

Question

Quizplus · Accepted Answer

An activity-based accounting system relies on accurately measuring the costs of activities, so that resources can be allocated appropriately and non-value-added activities can be eliminated. The other options do not accurately describe a critical component of this system.

A Critical Component of an Activity-Based Accounting System Is