Costs associated with developing an ABC system most likely include:
A) Reduced profits
B) Loss of market share
C) Employee time and consulting fees
D) Increased overhead costs

Question

Quizplus · Accepted Answer

Developing an ABC system requires a significant amount of employee time and consulting fees. Although it may increase overhead costs initially, it ultimately leads to more accurate cost allocation and can improve profitability in the long run. Reduced profits and loss of market share are not necessarily associated with developing an ABC system.

Costs Associated with Developing an ABC System Most Likely Include