Which of the Following Is a Sign That a "Smoothing

Multiple Choice

Which of the following is a sign that a "smoothing out" costing system exists?

A) Managers rely on data originated by the cost system.
B) The company wins bids they thought had low margins.
C) A batch consumes a relatively high level of input materials and conversion activities and is reported to have a relatively high cost.
D) A batch consumes a relatively low level of input materials and conversion activities and is reported to have a relatively low cost.
E) The company loses bids they thought had low margins.