Question: one of the banks senior financial analysts does not feel...
One of the bank’s senior financial analysts does not feel that the activities and activity cost pools were correctly identified. In particular, he feels that the activities do not conform to the common activity-based cost hierarchy, and therefore the total cost per account that is calculated based on the bank’s activity-based costing system will not be accurate. Attached is cost driver/allocation base table for this question.
Is this concern valid? why?