Fixed indirect costs are essential to grasp, particularly as they tend to rise with the complexity of the manufacturing process. Our current costing system adeptly tracks the contribution margin of our products, aiding us in determining the sales volume required to meet our overhead expenses. Adopting activity-based costing (ABC) promises not just immediate cost savings but also a clearer picture of how and where we deliver value to our customers. This insight will be invaluable should we choose to undertake business process reengineering. In our context, under-costing has no threat to us. only over-costing poses a potential issue. ABC enhances our ability to attribute direct costs more accurately to our products. In light of these benefits, I strongly advocate for the integration of activity-based costing across all facets of our operations." Can you critically comment on this statement and emphasize your points agree and disagree, and why

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Lets break down the statement and analyze its key points Fixed indirect costs tend to rise with the complexity of the manufacturing process This is ge... View the full answer