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when designing an activity-based costing system, related activities are frequently combined to reduce the amount of detail and record-keeping cost.

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Activity based costing involves combining related costs for easier accounting so this statement is True.

Activity based costing:

  • Involves assigning costs to related activities only
  • Is useful in seeing the total costs of certain activities
  • Allows companies to set better prices

Activity based costing combines activities that are similar such as those that require labor hours and then assigns costs to them based on the amount of activity that those sections saw during the production period.

We can therefore conclude that activity-based costing combines related activities and one reason for this is to reduce the cost of record keeping.

Find out more at https://brainly.com/question/17076430.

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