Question 1
ABC and traditional systems are quite similar in ________.
◦ the treatment of direct costs
◦ the allocation of overheads
◦ evaluating performance
◦ the identification of cost pools
Question 2
ABC systems help managers to ________.
◦ value ending inventory more accurately
◦ identify new designs to reduce costs
◦ evaluate direct material costs more efficiently
◦ improve the inventory turnaround time