Answer the following questions using the information below:
Cannady produces six products.Under their traditional cost system using one cost driver,SR6 costs $168.00 per unit.An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system.The new cost of SR6 was determined to be $178.00 per unit.
-Given this change in the cost:
A)SR6 has benefited from the new system.
B)the costing results for SR6 under the new system depend on the adequacy and quality of the estimated cost drivers and costs used by the system.
C)SR6 will now command a higher sales price.
D)SR6 is definitely more accurately costed.

Question

Quizplus · Accepted Answer

The change in cost is dependent on the accuracy and quality of the estimated cost drivers and costs used by the new system, meaning the costing results for SR6 under the new system could be improved or not. The other options cannot be deduced from the given information.

Answer the Following Questions Using the Information Below