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Describe four signs that help indicate when ABC systems are likely to provide the most benefits. ( Select the four statements that apply. ) Question
Describe four signs that help indicate when ABC systems are likely to provide the most benefits. Select the four statements that apply.
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Part
A
All or most direct costs are identified as either batchlevel costs or productsustaining costs.
B
Significant amounts of indirect costs are allocated using only one or two cost pools.
C
All or most indirect costs are identified as output unitlevel costs.
D
Operations staff is in agreement with the reported costs of manufacturing and marketing products and services.
E
Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity.
F
Products that a company is well suited to make and sell show small profits, whereas products that a company is less suited to produce and sell show large profits.
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