Demand for refinements to the costing system has accelerated due to ________.
A) increase in direct costs
B) decrease in product diversity
C) decrease in indirect costs
D) competition in product markets

Question

Quizplus · Accepted Answer

Competition in product markets can drive companies to seek better ways to control costs and improve profitability, which can lead to an increased demand for refinements to the costing system. Increases in direct costs may also lead to a demand for refinements, but there is no information to suggest this is the case. Decreases in product diversity or indirect costs are unlikely to drive a demand for costing system refinements.

Demand for Refinements to the Costing System Has Accelerated Due