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The cost of implementing and maintaining an activity-based costing system ______ the benefits received. Multiple choice question.

Sagot :

michell96

The implementation and maintenance of an activity-based costing system may outweigh costs greater than the benefits obtained (option B)

What is the Activity Based Costing System?

The ABC (Activity Based Costing) is a model that allows the allocation and distribution of the different indirect costs, according to the activities carried out, since these are the ones that actually generate costs.

This system arises from the need to solve the problem that standard costs normally present, when they do not faithfully reflect the added value chain in the production of a specific product or service, and therefore, it is not possible to adequately determine the price.

According to the above definition, it can be inferred that this costing system is not the most efficient because it can result in implementation and maintenance may outweigh costs over profits or benefits.

Note: This question is incomplete because the options are missing. Here are the options:

  • will always be higher than
  • may outweigh
  • will always be less than

Learn more about Activity Based Costing System in: https://brainly.com/question/24929506

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