Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:ABC costing helps an organization implement its strategy through all of the following means except:
A)Providing accurate cost information.
B)Identifying the most profitable products and customers.
C)Helping improve cycle time.
D)Identifying value added and non-value added activities.
E)Providing a basis for effective utilization of capacity.

Question

Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:ABC costing helps an organization implement its strategy through all of the following means except:
A)Providing accurate cost information. 
B)Identifying the most profitable products and customers. 
C)Helping improve cycle time. 
D)Identifying value added and non-value added activities. 
E)Providing a basis for effective utilization of capacity.

Quizplus · Accepted Answer

ABC costing can help improve cycle time, as it allows a company to identify and allocate costs to specific activities and processes, which can then be analyzed and optimized for efficiency. Therefore, C is incorrect and the correct answer is C.