An effective activity-based cost system always ignores facility-sustaining cost drivers.

Name: An effective activity-based cost system always ignores facility-sustaining cost drivers.
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Question

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An effective activity-based cost system usually uses facility-sustaining cost drivers along with other cost drivers. Facility-sustaining cost drivers are ignored only when it is difficult to find a good cause-and-effect relationship between these costs and the cost-allocation base.

An Effective Activity-Based Cost System Always Ignores Facility-Sustaining Cost Drivers