What Might Be an Impediment in Changing from a Traditionally

question 48

Multiple Choice

What might be an impediment in changing from a traditionally based costing system to an activity-based costing system?

• A)Management may not be in favour of a change.
• B)Excessive costs may be incurred to assist in capturing costs.
• C)Some costs would still have to be allocated arbitrarily after the changeover.
• D)All of the above are impediments.

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Definitions:

Wheat Yield

defines the amount of wheat produced per unit area of land.

Bushels

A volume measure used primarily in agriculture, equivalent to approximately 35.24 liters in the United States.

Millimetres

A metric unit of length equal to one thousandth of a meter, used for measuring small distances.

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