Indications that a product cost system needs revision include
A)managers lose bids they expected to win and win bids they expected to lose.
B)employees do not believe the cost numbers are accurate.
C)the company uses a single-allocation-base system developed long ago.
D)all of the above.

Question

Quizplus · Accepted Answer

A product cost system needs revision if managers lose bids unexpectedly, if employees express skepticism of cost numbers, or if the company uses an outdated cost allocation system. Therefore, all of the options listed are indications that a revision is necessary.

Indications That a Product Cost System Needs Revision Include