Once the ________ system highlights the cost of unused capacity as a separate line item,managers are able to pursue a number of options to reduce unused capacity and improve performance.
A)traditional
B)information
C)financial
D)ABC

Question

Quizplus · Accepted Answer

The statement mentions unused capacity as a separate line item, which indicates that the system being referred to is an ABC (Activity-Based Costing) system. ABC systems highlight the costs of unused capacity and allow managers to make more informed decisions about reducing that unused capacity and improving performance. Therefore, the best choice is D, ABC.

Once the ________ System Highlights the Cost of Unused Capacity