Which of the following is not a sign of when an activity-based costing system would likely provide the manager with the most benefits?
A)Significant amounts of indirect costs are allocated using only one or two cost pools.
B)All or most indirect costs are identified as output unit-level costs.
C)Products make diverse demands on resources because of differences in volume,process steps,batch size,or complexity.
D)Products that a company is will suite to make and sell show small profits,whereas products that a company is less suited to produce and sell show large profits.
E)Operations staff that agrees with all of the reported costs of manufacturing and marketing products and services.

Question

Quizplus · Accepted Answer

Operations staff agreeing with reported costs does not necessarily indicate the need for an activity-based costing system. The other options suggest situations where an activity-based costing system would likely provide the manager with the most benefits.

Which of the Following Is Not a Sign of When