For small manufacturing firms, ABC systems are best with
A) i
B) ii
C) iii
D) iv

Question

For small manufacturing firms, ABC systems are best with 
A) i 
B) ii 
C) iii 
D) iv

Quizplus · Accepted Answer

Small manufacturing firms typically have a limited number of products and a low volume of production, making it easier to allocate the costs for each product using the traditional costing system. Therefore, ABC systems may not provide much added value and may be costly to implement. Choice i, which suggests using the traditional costing system, is the best option for small manufacturing firms.

For Small Manufacturing Firms, ABC Systems Are Best with