Question: In ABC systems, activities are often separated into a hierarchy of categories. REQUIRED A. In your own words, explain what is meant by a cost

In ABC systems, activities are often separated into a hierarchy of categories.


REQUIRED

A. In your own words, explain what is meant by a cost hierarchy in ABC.

B. Explain why uncertainty is possible in classifying costs within the cost hierarchy.

C. Explain how categorizing costs into a hierarchy helps accountants determine how costs behave.

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