In which of the following situations does it make sense to implement an ABC system?
A)When its benefits exceed implementation costs
B)When ABC traces more costs as indirect costs
C)When there is a weak cause-and-effect relationship between costs in the cost pools and their cost-allocation bases
D)When ABC doesn't provide information to make better decisions

Question

Quizplus · Accepted Answer

Implementing an ABC system should only be considered if the benefits of the system exceed the costs of its implementation. If the benefits outweigh the costs, the organization can get better information and make more informed decisions.

In Which of the Following Situations Does It Make Sense