When Introducing an Activity-Based Costing System Which of the Following

question 8

Multiple Choice

When introducing an activity-based costing system which of the following actions are recommended for the changeover to be successful?

• A) Increased involvement of non-accounting staff in the design and implementation stages.
• B) Preparation of a change management plan that considers behavioural issues.
• C) A bottom-up approach to encourage staff to own the new system and to see it as a tool to help them with their work.
• D) All of the answers are recommended.

---

Definitions:

Sum-Of-The-Years'-Digits

A depreciation method that accelerates the expense recognition, based on a descending fraction of the sum of the year digits.

Depreciation Expense

Apportioning the expenditure of a substantial asset over its operational life.

Residual Value

The estimated value that an asset will be worth at the end of its useful life, often considered in leasing or depreciation calculations.

Double-Declining-Balance

An accelerated method of depreciation that doubles the regular depreciation rate, emphasizing higher depreciation expenses in the earlier years of an asset's life.