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Author Question: Recognizing ABC information is not always perfect because ________. (Read 179 times)

crobinson2013

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on: Mar 6, 2021

Question 1

It only makes sense to implement an ABC system when ________.
◦ a single product is produced in bulk
◦ its benefits exceed its implementation costs
◦ it traces more costs as direct costs
◦ production process is labor-intensive

Question 2

Recognizing ABC information is not always perfect because ________.
◦ it mostly uses far too many indirect cost pools than what is actually required
◦ it balances the need for better information against the costs of creating a complex system
◦ it lacks the simplicity that traditional systems used to have to allocate overhead costs
◦ it never measures how the resources of an organization are used
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by crobinson2013 on Mar 6, 2021

Tonyam972

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Reply #1 on: Mar 6, 2021
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crobinson2013

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

jamesnevil303

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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