Question
What are the main benefits of ABC systems? Select all that apply. A. ABC systems will always provide exact costing information for all products produced
What are the main benefits of ABC systems? Select all that apply.
A.
ABC systems will always provide exact costing information for all products produced in all divisions of a company.
B.
ABC systems can provide accurate costing information based on the processes used in a company.
C.
ABC systems can provide accurate costing information for outputs that have diverse demands on resources.
D.
Indirect costs can be classified at different levels in the production process.
What are the main costs and limitations of ABC systems? Select all that apply.
A.
The collection and measurement of data necessary to implement ABC can introduce errors.
B.
Even basic ABC systems require many calculations to determine costs of products and services.
C.
ABC systems generally do not provide additional useful information compared to traditional costing systems.
D.
Very detailed ABC systems are costly to operate, unwieldy and difficult to understand.
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