Requirement $3.$ Comment on

CarpenterCarpenter$\text{'}$s

concerns about the accuracy and limitations of ABC. $($Select all that$$ apply.$)$

A$.$

Using$$ inspection$-$hours and$$ setup$-$hours as allocation bases would also probably lead to more accurate cost$$ information, but it would increase measurement costs.

B$.$

When designing and implementing ABC$$ systems, it is not necessary for managers and management accountants to trade off the costs of the system against its benefits.

C$.$

Adding more activities would have no impact on the complexity of the system and should be inexpensive to implement. It would not necessarily improve the accuracy of cost information and therefore may not improve decision making.

D$.$

CarpenterCarpenter$\text{'}$s

comments about ABC implementation are not valid.

E$.$

Using$$ inspection$-$hours and$$ setup$-$hours as allocation bases would probably not lead to more accurate cost information and would also have no effect on measurement costs.

F$.$

CarpenterCarpenter$\text{'}$s

comments about ABC implementation are valid.

G$.$

When designing and implementing ABC$$ systems, managers and management accountants need to trade off the costs of the system against its benefits.

H$.$

Adding more activities would make the system harder to understand and more costly to$$ implement, but it would probably improve the accuracy of cost$$ information, which, in$$ turn, would help

PrestonPreston

make better decisions.