In what way(s)do managers make cost-benefit decisions as to the use of activity analysis or traditional costing methods?
A)They reject activity analysis and stay with the simpler traditional method.
B)They use activity-based costing because they want information that will help them be competitive.
C)They use activity-based costing as a special analysis,but not as an ongoing information system.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

Managers make cost-benefit decisions regarding the use of activity analysis or traditional costing methods based on various factors. Some may reject activity analysis due to its complexity and stick with traditional methods, others adopt activity-based costing (ABC) to gain competitive insights, and some use ABC for special analyses without fully integrating it into their ongoing information systems.

In What Way(s)do Managers Make Cost-Benefit Decisions as to the Use