Question

Effective implementation of activity-based costing (ABC) requires:

A. Normally the assistance of a consultant.
B. A sophisticated and expensive computer system.
C. Support of top management and key employees.
D. Capturing properly the complexity of the data.
E. ABC has no significant implementation issues.

Answer 1

The effective implementation of activity-based costing (ABC) requires the support of top management and key employees, as well as capturing the complexity of the data.

Step-by-step explanation:

The effective implementation of activity-based costing (ABC) requires the support of top management and key employees. It is important to have their commitment and involvement in order to successfully implement ABC. Additionally, capturing the complexity of the data is essential. ABC involves identifying and allocating costs based on activities, so it is crucial to accurately capture and analyze the data related to these activities.