Which of the Following Statements Is True of ABC Systems

question 113

Multiple Choice

Which of the following statements is true of ABC systems?

• A) ABC systems provide less insight than traditional systems into the management of the indirect costs.
• B) ABC systems are used by managers for strategic decisions rather than for inventory valuation in merchandising companies.
• C) Service companies find great value from ABC because a vast majority of their cost structure is composed of direct costs.
• D) ABC systems is valuable for pricing decisions but not for understanding, managing, and reducing costs in government institutions.