A Well-Designed, Activity-Based Cost System Helps Managers Make Better Decisions

question 94

Multiple Choice

A well-designed, activity-based cost system helps managers make better decisions because information derived from an ABC analysis ________.

• A) can be used to eliminate nonvalue-added activities
• B) is easy to analyze and interpret
• C) takes the choices and judgment challenges away from the managers
• D) emphasizes how managers can achieve higher sales