As the number of activities in an ABC system increases, measurement error tends to:
A) Increase
B) Decrease
C) Stay the same
D) Focus more on top management

Question

Quizplus · Accepted Answer

As the number of activities in an Activity-Based Costing (ABC) system increases, the complexity of tracking and measuring those activities also increases. This can lead to more opportunities for measurement error as there are more variables and processes to manage and monitor.

As the Number of Activities in an ABC System Increases