Which of the following statements is (are) true regarding a company that has implemented ﬂexible manufacturing systems and activity-based costing? I.The company has erred, as these two practices used in conjunction with one another will severely limit the ﬁrm's ability to analyze costs over the relevant range. II.Costs formerly viewed as ﬁxed under traditional-costing systems may now be considered variable with respect to changes in cost drivers such as number of setups, number of material moves, and so forth. III.As compared with the results obtained under a traditional-costing system, the concept of break-even analysis loses meaning.

Question

Quizplus · Accepted Answer

Flexible manufacturing systems and activity-based costing allow companies to view costs as variable with respect to specific cost drivers, which were previously considered fixed under traditional costing systems.

Which of the Following Statements Is (Are) True Regarding a Company