Answer the Following Questions Using the Information Below

question 7

Multiple Choice

Answer the following questions using the information below:
Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
The accounting records show the Mossman Job consumed the following resources:

-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 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.