The presence of any of the following factors would suggest a switch to ABC EXCEPT when
A)product lines differ greatly in volume.
B)overhead costs constitute a minor portion of total costs.
C)the manufacturing process has changed significantly.
D)production managers are ignoring data provided by the existing system.

Question

Quizplus · Accepted Answer

ABC is most useful when overhead costs constitute a significant portion of total costs. If overhead costs are already a minor portion of total costs, switching to ABC may not provide significant benefits. A, C, and D are all valid reasons for considering a switch to ABC.

The Presence of Any of the Following Factors Would Suggest