Author Question: Recognizing ABC information is not always perfect because ________. (Read 185 times)

crobinson2013 · **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

Tonyam972 · **Reply #1 on:** Mar 6, 2021

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