When implementing an ABC system, the accounting information system may require modifications to
A) Include fewer ledger accounts:
B) Include only costs from the most recent periods
C) Gather and report activity and cost driver information
D) Include more ledger accounts

Question

Quizplus · Accepted Answer

Implementing an ABC system requires the gathering and reporting of activity and cost driver information, which may require modifications to the accounting information system. Option A and D are both not appropriate as an ABC system typically requires more detailed information and not fewer ledger accounts. Option B is also not appropriate as only using costs from the most recent periods ignores the historical data that may be relevant in identifying cost drivers.

When Implementing an ABC System, the Accounting Information System May