A cost accounting system should be revised when
A) the existing cost accounting system provides information that is representative of operations.
B) the existing cost accounting system could be updated, just to keep ahead.
C) the existing cost accounting system does not produce information that reflects the way various products use scarce resources.
D) management wants to change the system, even though the information is relevant and correct.
E) a new system would be easier to understand but would not be reliable.

Question

Quizplus · Accepted Answer

The correct choice is C because a cost accounting system should be revised when it fails to accurately reflect how different products consume scarce resources. This ensures that the system provides relevant and useful information for decision-making, highlighting inefficiencies or areas for improvement in resource allocation.

A Cost Accounting System Should Be Revised When