Problem 1: ABC systems are always more accurate than traditional costing systems. Do you agree? Why?
Problem 2: What is an ABC System? The ABC system that identifies the various activities performed in a firm and uses multiple cost drivers (volume and nonvolume based cost drivers) to assign overhead costs (or indirect costs) to products. ABC recognizes the causal relationship of cost drivers with activities.
Problem 3: Why do you think that more organizations are adopting ABC systems?