Final answer:
Implementing an ABC system of costing requires a company to review functions within its value chain to improve cost allocation and decision-making.
Step-by-step explanation:
Implementing an ABC system of costing requires a company to undergo an intensive, detailed review of functions within its value chain. This review helps the company to identify the various activities and resources involved in producing its products or services. The result of this review is a better understanding of the costs associated with each activity and resource, allowing the company to allocate costs more accurately and make informed decisions regarding pricing, product mix, and process improvements.