Diamond Cleats Co.manufactures cleats for baseball shoes.It has outlined the following overhead cost drivers:
Diamond Cleats Co.has an order for cleats that has the following production requirements:
ABC costing provides 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: 
Diamond Cleats Co.has an order for cleats that has the following production requirements: 
ABC costing provides 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 does not directly help improve cycle time. Its primary focus is on providing accurate cost information and identifying value added and non-value added activities in order to identify the most profitable products and customers, and provide a basis for effective utilization of capacity.