ABC costing systems are primarily for use in manufacturing and marketing and not for design engineering.

Question

Quizplus · Accepted Answer

ABC costing systems can be used in several different areas of business, including design engineering. The purpose of ABC costing systems is to provide more accurate cost information by tracing overhead costs to specific activities and products. This can be beneficial in identifying areas that may be experiencing inefficiencies or in making pricing and production decisions.

ABC Costing Systems Are Primarily for Use in Manufacturing and Marketing