Answer: A. when a company has the accounting and information system expertise to develop the system
Explanation:
Activity-based costing (ABC) is a method whereby the of overhead and the indirect costs such as utilities and salaries are assigned to services and products. In ABC, for every production, a cost has to be assigned.
In this scenario, the costs of adopting ABC may be lower for some companies than for others when a company has the accounting and information system expertise to develop the system. For companies that do not have the accounting and information system expertise, they'll have to look for the expertise to help them with this and this will lead to the company incurring more cost.
