Question: In an effort to develop more accurate product costs, Bell Corporation decided to adopt an activity-based costing (ABC) system. However, much to managements surprise, the

In an effort to develop more accurate product costs, Bell Corporation 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.

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

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