The goal of a properly constructed ABC system is to:
A)have the most accurate cost system.
B)identify more indirect overhead costs.
C)develop the best cost system for an economically reasonable cost.
D)have separate allocation rates for each department.

Question

Quizplus · Accepted Answer

The goal of a properly constructed Activity-Based Costing (ABC) system is to develop the most accurate and effective cost system possible at an economically reasonable cost, balancing accuracy with the cost of maintaining the system.

The Goal of a Properly Constructed ABC System Is To