The Benefits Arising from the Introduction of Activity-Based Costing Are

question 41

Multiple Choice

The benefits arising from the introduction of activity-based costing are likely to be greater where:
i. overhead is a large proportion of total cost.
ii. implementation costs are not high due to the support of advanced IT systems.
iii. batches are of a similar size.

• A) i and ii
• B) i and iii
• C) ii and iii
• D) None of the given answers

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Definitions:

Systems Development

The process of creating and implementing a new system, including both software and hardware components, to meet specific business or user requirements.

System Design

The process of defining the architecture, components, modules, interfaces, and data for a system to satisfy specified requirements.

Technical Specifications

Detailed information and criteria about the technical aspects that a product or project must meet.

Technical Feasibility

The assessment of a project's technical aspects to ensure it is possible to design and implement within the available resources and technology.