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Hello,
Can you please help me with this question by explaining it..The following statements have been made about ABC.
1)ABC recognises that some overheads costs do not depend directly on the volume of output
2)The cost of implementing ABC may exceed the benefits for some businessThe answer given in the kit is statement 2 is true. Can you please explain why the statement 1 is wrong
Thank you
I do not have the Becker Revision Kit (only the BPP Kit), but assuming that you have typed out the question correctly then Statement 1 is true! I can only imagine that there is a mistake in the book (although strictly it should say “may not depend directly on the volume of output”. It depends on the nature of the overheads as to whether or not they depend on the volume of output.)
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