Author Question: Which of the following is a sign that an ABC system may be useful for an organization? (Read 41 times)

Bernana · **on:** Mar 6, 2021

Question 1

The goal of a properly constructed ABC system is to ________.
◦ have the most accurate cost system
◦ identify more indirect costs
◦ develop the best cost system that meets the cost/benefit test
◦ have separate allocation rates for each department

Question 2

Which of the following is a sign that an ABC system may be useful for an organization?
◦ Significant amounts of indirect costs are allocated using multiple cost pools.
◦ Products make similar demands on resources because of similarities in volume, process steps, batch size, or complexity.
◦ Many indirect costs are described as batch-level costs, product-sustaining costs, or facility-sustaining costs.
◦ Operations staff disagrees with accountants about the costs of manufacturing and marketing products and services.

yifu223 · **Reply #1 on:** Mar 6, 2021

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