ABC system are likely to provide the most benefits to a company with significant amounts of indirect costs that are allocated using just one or two costs pools and products that make diverse demands on resources.

Question

Quizplus · Accepted Answer

ABC system is designed to allocate indirect costs more accurately based on the specific demands made by different products or services on various resources. It is more beneficial for companies with complex and diverse production processes, where indirect costs are allocated based on one or two cost pools. Therefore, option A is correct.

ABC System Are Likely to Provide the Most Benefits to a Company