In an effort to develop more accurate product costs, Bell Corporation decided to adopt an activity-based costing

Question:

In an effort to develop more accurate product costs, Bell decided to adopt an activity-based costing (ABC) system. However, much to management’s surprise, the product costs determined under ABC were not significantly different from the old product costs. The accounting manager wants to switch back to the old method, which was much easier and less costly.

Required
Should Bell abandon the ABC system? Why or why not?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...