Which of the following is not a reason that manufacturing and distribution personnel would implement activity-based costing systems?
A)Focus on how to reduce costs.
B)Focus on why to reduce costs.
C)Set cost-reduction targets to reduce per unit costs.
D)Reduce work without compromising customer service or perceived value.
E)Reduce work while disregarding customer service and the perceived value.

Question

Quizplus · Accepted Answer

Implementing activity-based costing systems is intended to help reduce costs while maintaining customer service and perceived value. Choosing to disregard customer service and perceived value would go against the purpose of implementing such a system. Therefore, option E is not a reason that manufacturing and distribution personnel would implement activity-based costing systems.

Which of the Following Is Not a Reason That Manufacturing