Which of the Following Statements Is True of ABC Systems

Multiple Choice

Which of the following statements is true of ABC systems?

A) ABC systems provide less insight than traditional systems into the management of the indirect costs.
B) ABC systems are used by managers for strategic decisions rather than for inventory valuation in merchandising companies.
C) Service companies find great value from ABC because a vast majority of their cost structure is composed of direct costs.
D) ABC systems is valuable for pricing decisions but not for understanding, managing, and reducing costs in government institutions.