ABC implementation often represents a significant change in the costing system and managers must make important choices about the level of detail to use in activity-based costing systems.

Question

Quizplus · Accepted Answer

Managers must carefully consider the level of detail to use in the implementation of ABC costing systems as it represents a significant change from traditional costing methods. Choosing the appropriate level of detail is crucial to accurately capturing and allocating costs to activities and ultimately products or services.

ABC Implementation Often Represents a Significant Change in the Costing