A Cost Accumulation System Should Most Likely Be Reevaluated When
A cost accumulation system should most likely be reevaluated when a company has
A) automated one or more production processes.
B) introduced new products to its customers.
C) had its industry deregulated.
D) all of the above.
Engaging in which of the following will result in radical changes being made to an organization's processes?
A) Continuous improvement
D) Mass customization
Use of activity-based costing and activity-based management requires
A) the creation of an environment for change in an organization.
B) elimination of all non-value-added activities in an organization.
C) that company processes be automated and the use of direct labor be minimal.
D) each process be fully mapped and all activities be identified as value-added or non-value-added.
If activity-based costing is implemented in an organization without any other changes being implemented, total overhead manufacturing costs will
A) be reduced because of the elimination of non-value-added activities.
B) be reduced because organizational costs will not be assigned to products or services.
C) be increased because of the need for additional people to gather information on cost drivers and cost pools.
D) remain constant and simply be spread over products using different cost drivers.