A Company Is Considering the Implementation of an Activity-Based Costing

Multiple Choice

A company is considering the implementation of an activity-based costing and management program. The company:

A) Should focus on manufacturing activities and avoid implementation with service-type functions.
B) Would probably find a lack of software in the marketplace to assist with the related record keeping.
C) Would normally gain added insights into causes of cost.
D) Would likely use fewer cost pools than it did under more traditional accounting methods.