1) Which of the following is a reason that has accelerated the demand for refinements to the costing system? A) The declining demand for customized products has led managers to decrease the variety of products and services their companies offer. B) The use of product and process technology has led to an increase in indirect costs and a decrease in direct costs. C) The increased of automated processes has led to the increase in direct manufacturing cost leading to a decrease in breakeven point. D) The increasing competition in product markets has led to an increase in contribution margin resulting in a decrease of breakeven point.
1) Which of the following is a reason that has accelerated the demand for refinements to the costing system? A) The declining demand for customized products has led managers to decrease the variety of products and services their companies offer. B) The use of product and process technology has led to an increase in indirect costs and a decrease in direct costs. C) The increased of automated processes has led to the increase in direct manufacturing cost leading to a decrease in breakeven point. D) The increasing competition in product markets has led to an increase in contribution margin resulting in a decrease of breakeven point.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter5: Activity-based Costing And Management
Section: Chapter Questions
Problem 11MCQ
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Transcribed Image Text:1) Which of the following is a reason that has accelerated the demand for refinements to the costing
system?
A) The declining demand for customized products has led managers to decrease the variety of products
and services their companies offer.
B) The use of product and process technology has led to an increase in indirect costs and a decrease in
direct costs.
C) The increased of automated processes has led to the increase in direct manufacturing cost leading to a
decrease in breakeven point.
D) The increasing competition in product markets has led to an increase in contribution margin resulting
in a decrease of breakeven point.
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