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In: AccountingActivity-based costing systems are quite complex with eachactivity cost and department usually getting a lot...Activity-based costing systems are quite complex with eachactivity cost and department usually getting a lot of attention.What are the most important factors in developing cost factors foreach activity?Despite all the analysis usually done, such cost systems tend toinaccurately assign too much overhead in certain circumstances andtoo little overhead in others.Why might that distortion occur?How might understanding the hierarchy of activities help explainhow to combat this trend?"
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