A Major Advantage in Changing from a Traditionally Based Costing

Multiple Choice

A major advantage in changing from a traditionally based costing system to an activity-based costing system is

A) a company's customers can benefit from any reduction in costs.
B) management will be able to identify the true cost of non-added-value activities.
C) direct labour and material costs will be reduced.
D) supplier costs will be reduced after the changeover.