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For Dehli Inkstone,is It Worth Implementing a Full-Fledged ABC System,based

Question 5

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For Dehli Inkstone,is it worth implementing a full-fledged ABC system,based upon the findings for these two products?


A) No,for Standard the cost difference between using machine hours and ABC is less than 30 cents per unit,so adoption of the ABC system is not cost-beneficial
B) Yes,all of the single-base allocation systems over cost the Masterpiece
C) No,for Masterpiece the cost difference between using labor hours and ABC is less than 40 cents per unit,so adoption of the ABC system is not cost-beneficial
D) No,the ABC system has failed to reduce total overheads
E) No,the proportions of the different inputs consumed by each product are not sufficiently different to make ABC worthwhile

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