Question

What might be a reason to not change from a traditionally based costing system to an activity-based costing system?

Accepted Answer

A) Products or services are similar in volume and activity. 
B) Support services are spread evenly throughout the company's activities. 
C) Overhead is a low component of the overall cost. 
D) All of the above are valid reasons. 
A) Products or services are similar in volume and activity. 
B) Support services are spread evenly throughout the company's activities. 
C) Overhead is a low component of the overall cost. 
D) All of the above are valid reasons.

What might be a reason to not change from a traditionally based costing system to an activity-based costing system?

Managerial Accounting

Managerial Cost Concepts and Cost Behaviour Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters

Exam 5: Activity-Based-Costing

What might be a reason to not change from a traditionally based costing system to an activity-based costing system?

Managerial Accounting

Managerial Cost Concepts and Cost Behaviour Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters