What might be a reason to NOT change from a traditionally-based costing system to an activity-based costing system?
A)Products or services are similar in volume and activity.
B)Support services are spread evenly throughout the company's activities.
C)Overhead is a low component of the overall cost.
D)All of the above are valid reasons.

Question

Quizplus · Accepted Answer

All the options provided are valid reasons to not switch to an activity-based costing system, as they indicate situations where the benefits of such a system may not outweigh the costs or complexities involved in implementing it.

What Might Be a Reason to NOT Change from a Traditionally-Based