The costs of adopting ABC may be lower for some companies than for others. This situation may occur
A)when a company has the accounting and information system expertise to develop the system.
B)when a company has the information technology to record and compile cost driver data.
C)with either situation A or situation B.
D)in none of the above instances.

Question

Quizplus · Accepted Answer

Both situation A and B can result in lower adoption costs for a company. If a company already has the accounting and information system expertise to develop the system or the information technology to record and compile cost driver data, it may require less additional investment to implement ABC. However, if a company lacks both of these capabilities, the adoption costs may be higher. Therefore, option D (in none of the above instances) is incorrect.

The Costs of Adopting ABC May Be Lower for Some