Which of the following is NOT a sign that a 'smoothing out' costing system exists?
A)Products that a company is well suited to make and sell show large profits.
B)Operations managers don't use the data originated by the cost system.
C)New product variations have been added,but the cost system has not been upgraded.
D)The company loses bids they believe were priced competitively.

Question

Quizplus · Accepted Answer

A 'smoothing out' costing system often results in inaccurate costing across products, leading to misinterpretation of profitability. Products that a company is well-suited to make showing large profits does not indicate a smoothing out system; instead, it could simply reflect efficient production and market alignment. The other options (B, C, D) are indicators of potential issues with the costing system, such as not reflecting current operations or market conditions accurately.

Which of the Following Is NOT a Sign That a 'Smoothing