The benefits of adopting ABC/ABM are higher for companies in competitive markets because
A)accounting/information system expertise is inexpensive to develop.
B)ABM can pinpoint opportunities for cost savings.
C)accurate product cost information is not as relevant for price setting.
D)companies in competitive markets have low indirect costs.

Question

Quizplus · Accepted Answer

Companies in competitive markets require constant monitoring of costs and efficient use of resources to remain competitive. ABC/ABM provides more accurate product cost information, enabling companies to identify cost-saving opportunities and optimize their pricing strategies. Thus, the benefits of adopting ABC/ABM are higher for companies in such markets.

The Benefits of Adopting ABC/ABM Are Higher for Companies in Competitive