Suppose that a company called Futuristics, Inc hires you to work in Supply Chain Management. Your new manager sets up a meeting to discuss the Surfers, Inc. account. The meeting opens with the manager stating, "I just reviewed the financial report on Surfers, Inc. It really doesn't cost much to serve them, does it?" Which of the following would be an appropriate response to the manager's statement?
A. Traditional accounting methods are perfect to help us make decisions about serving the Surfers, Inc. account
B. Activity-based costing would be better to report the Surfers, Inc. results to the financial community
C. Traditional cost accounting gives us a good measure for comparing by customer
D. Activity-based costing could better show us how much it really costs to serve Surfers, Inc.
E. Activity-based costing takes depreciation into account to enable us to know when to replace machinery