An Activity Based Costing (ABC) System Plays an Important Role

Multiple Choice

An Activity Based Costing (ABC) system plays an important role in setting a target cost because

A) ABC encourages product designers to charge higher sales prices.
B) ABC encourages product designers to use a traditional product costing system.
C) ABC allows product designers to attempt cost improvement in particular activities.
D) ABC allows product designers to replace the manufacturing system.
E) ABC allows product designers to focus on how to increase the costs of manufacturing.