Implementation of an Activity-Based Costing System Requires a Company to Generate

question 138

True/False

Implementation of an activity-based costing system requires a company to generate more detailed accounting information than would be required by a traditional product cost system.

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Definitions:

Relevant Cost

A relevant cost is a cost that will be affected by a decision in the future and is important in business decision-making processes.

Depreciation Charge

An accounting expense recorded to allocate the cost of a tangible asset over its useful life.

Book Value

The value of an asset according to its balance sheet account balance, often different from its market value.