Implementing a modern costing approach often results in short-term declines in profitability.

Question

Quizplus · Accepted Answer

Implementing a modern costing approach often requires changes to processes and systems, which can initially result in increased costs and reduced efficiency. This may lead to short-term profitability declines, but the long-term benefits of a more accurate and efficient cost management system can ultimately lead to improved profitability.

Implementing a Modern Costing Approach Often Results in Short-Term Declines