ABC systems are typically associated with:
A) Improved profitability for firms with advanced manufacturing techniques that combine information technology with flexible manufacturing practices.
B) Improved profitability for manufacturing firms, but not service firms
C) Improved profitability for service firms, but not manufacturing firms
D) Improved profitability for all firms that implement them

Question

Quizplus · Accepted Answer

ABC (Activity-Based Costing) systems are particularly beneficial for firms with advanced manufacturing techniques, as they provide more accurate cost information by linking costs to specific activities, which is crucial in environments that use information technology and flexible manufacturing practices.

ABC Systems Are Typically Associated With