The Benefits of Adopting ABC/ABM Are Higher for Companies in Competitive

Multiple Choice

The benefits of adopting ABC/ABM are higher for companies in competitive markets because

A) accurate product cost information is essential to be competitive, regardless of the cost.
B) ABM can pinpoint opportunities for cost savings, which increase the company's profit or are passed on to customers through lower prices.
C) ABM allows managers to ignore competition when making pricing decisions thus making more accurate decisions.
D) the more competitive the market, the more likely the competition is using ABC.
E) ABC/ABM should not be used in a competitive market because traditional costing is less expensive allowing for lower prices.