Question: Although adding more activity cost pools to an activity-based costing system may improve the precision of product costing, this increase in precision must be judged

Although adding more activity cost pools to an activity-based costing system may improve the precision of product costing, this increase in precision must be judged against:

  1. The cost of the product
  2. The price of the product
  3. The cost of developing and maintaining the additional cost pools
  4. All of the above

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