Q – Describe four signs that help indicate when ABC systems are likely to provide the most benefits. A – Four signs that help indicate when ABC systems are likely to provide the most benefits are as follows; when operational staff greatly disagree with the costs of manufacturing a product, when only one or two cost pools are used to share indirect costs, when products have different effects on the demands of resources because of factors like complexity, amount, steps in manufacturing or volume, and when products that a company would be perfect for making and selling produces small profit to them but products they are not as capable of making and selling would give them much more profits.Instructor’s Q – Why would limited number of cost pools sharing indirect costs be a benefit?Criteria – NoneReference: Horngren, C. T., Datar, S.M., Foster, G., Rajan, M., & Ittner, C. (2009). Cost Accounting: A Managerial Emphasis (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
QuestionQ – Describe four signs that help indicate when ABC systems are likely to provide themost benefits.A – Four signs that help indicate when ABC systems are likely to provide the most…
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