A Major Advantage in Changing from a Traditionally-Based Costing System

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.