11.ABC usually results in less appropriate management decisions.
12.ABC is generally more costly to implement than traditional costing.
13.ABC eliminates all arbitrary cost allocations.
14.ABC is particularly useful when product lines differ greatly in volume and manufacturing complexity.
15.ABC is particularly useful when overhead costs are an insignificant portion of total costs.
16.Activity-based management focuses on reducing costs and improving processes.
17.Any activity that increases the cost of producing a product is a value-added activity.
18.Engineering design is a value-added activity.
19.Non-value-added activities increase the cost of a product but not its market value.
20.Machining is a non-value-added activity.