213k views
1 vote
Which of the following is not true regarding ABC?

a.ABC is too time-consuming and complicated for practical applications over a sustained period.
b.ABC identifies the most and least profitable products and customers.
c.ABC promotes the lean manufacturing philosophies of process simplification and waste elimination.
d. All of the statements are true.

1 Answer

6 votes

Final answer:

ABC is not too time-consuming and complicated for practical applications over a sustained period. It helps determine costs and aligns with lean manufacturing philosophies.

Step-by-step explanation:

The correct option that is not true regarding ABC is: a. ABC is too time-consuming and complicated for practical applications over a sustained period.

ABC (Activity-Based Costing) is a method used in managerial accounting to identify the cost of activities and allocate costs to products or services based on the activities they require. It helps in accurately determining the costs of different products and customers, aiding in decision-making and resource allocation. ABC also aligns with lean manufacturing philosophies by promoting process simplification and waste elimination.

User Swingline Rage
by
8.1k points