Which of the following is a reason that has accelerated the demand for refinements to the costing system?
A) The declining demand for customized products has led managers to decrease the variety of products and services their companies offer.
B) The use of product and process technology has led to an increase in indirect costs and a decrease in direct costs.
C) The increased of automated processes has led to the increase in direct manufacturing cost leading to a decrease in break even point.
D) The increasing competition in product markets has led to an increase in contribution margin resulting in a decrease of break even point.

Question

Quizplus · Accepted Answer

The use of product and process technology has led to an increase in indirect costs and a decrease in direct costs. This, in turn, has made it more difficult for managers to accurately assign costs to their products and services, leading to a need for refinements in the costing system.

Which of the Following Is a Reason That Has Accelerated