It only makes sense to implement an ABC system when ________.
A) a single product is produced in bulk
B) its benefits exceed its implementation costs
C) it traces more costs as direct costs
D) production process is labor-intensive

Question

Quizplus · Accepted Answer

Implementing an ABC system can be expensive and time-consuming. Therefore, it should only be implemented when its benefits, such as providing a more accurate costing system, exceed its implementation costs. The other options are not necessarily a factor in determining whether or not to implement an ABC system.

It Only Makes Sense to Implement an ABC System When