For Which One of the Following Reasons Is the Calculation

Multiple Choice

For which one of the following reasons is the calculation of overhead variances in conjunction with an activity-based cost (ABC) system desirable from the standpoint of management?

A) The resulting cost-management system is currently required by generally accepted accounting principles (GAAP) .
B) Such a system would be consistent with the goal of managing activities rather than cost.
C) Such a system is likely to be less costly to design and implement.
D) Far fewer variances would likely be expected under such a system.
E) Conventional systems, though appropriate for a manufacturing setting, are not applicable to the service sector.