When introducing an activity-based costing system which of the following actions are recommended for the changeover to be successful?
A) Increased involvement of non-accounting staff in the design and implementation stages.
B) Preparation of a change management plan that considers behavioural issues.
C) A bottom-up approach to encourage staff to own the new system and to see it as a tool to help them with their work.
D) All of the answers are recommended.

Question

Quizplus · Accepted Answer

All of the recommendations are necessary for a successful changeover to activity-based costing system. Increased involvement of non-accounting staff in the design and implementation stages ensures that the system is user-friendly and meets the needs of various departments. Preparation of a change management plan that considers behavioural issues helps to manage resistance to change and ensures a smooth transition. A bottom-up approach encourages buy-in from employees and allows them to see the benefits of the new system to their work. Therefore, all of the answers are recommended.

When Introducing an Activity-Based Costing System Which of the Following