Do Activity-Based Costing Systems Always Provide More Accurate Product Costs

question 51

Essay

Do activity-based costing systems always provide more accurate product costs than conventional cost systems? Why or why not?

---

Definitions:

Payroll Tax

Taxes imposed on employers and employees, typically based on the salaries and wages paid to workers, used to fund social security and other public services.

Insurance Premiums

The amount paid periodically to an insurance company by a policyholder for coverage.

Beneficiaries

Individuals or entities entitled to receive benefits or profits from contracts such as wills, insurance policies, or trust funds.

Life Expectancy

The average period a person is expected to live, based on demographic factors such as current age, gender, and health conditions.