Signs that a product cost system is not working properly include that:
A)managers don't understand costs and profits.
B)the cost system was installed five years ago.
C)the cost system has multiple allocation bases.
D)the cost system is fully depreciated.

Question

Quizplus · Accepted Answer

If managers don't understand costs and profits, it indicates that the product cost system is not effectively communicating costs and may be giving inaccurate cost information. The other options do not necessarily indicate a problem with the product cost system.

Signs That a Product Cost System Is Not Working Properly