Which of the Following Is a Sign That an ABC

Multiple Choice

Which of the following is a sign that an ABC system may be useful?

A) There are small amounts of indirect costs.
B) Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity.
C) Products that a company is well-suited to make and sell show large profits; whereas products that a company is less suited to produce and sell show small profits.
D) Operations staff agrees with accountants about the costs of manufacturing and marketing products and services.
E) Almost none of the indirect costs are identified as output unit-level costs.