It ONLY makes sense to implement an ABC system when:
A)ABC provides information to make better decisions.
B)its benefits exceed implementation costs.
C)ABC traces more costs as direct costs.
D)there is a strong cause-and-effect relationship between costs in the cost pools and their cost-allocation bases.

Question

Quizplus · Accepted Answer

Implementing an ABC system requires significant resources and cost, and it's only worthwhile if the benefits of implementing the system exceed its implementation costs. Therefore, it only makes sense to implement an ABC system when its benefits outweigh implementation costs. While options A, C, and D are important factors to consider, they are not the only criteria to determine whether to implement an ABC system.

It ONLY Makes Sense to Implement an ABC System When