ABC Systems Are Similar to Traditional Costing Systems in the Way

question 4

Multiple Choice

ABC systems are similar to traditional costing systems in the way they:

• A) Allocate direct costs to cost objects
• B) Define cost allocation bases
• C) Trace direct costs to cost objects
• D) Trace indirect costs to activities

---

Definitions:

American Call Option

A financial agreement granting the purchaser the option, yet not the compulsion, to purchase a stock, bond, commodity, or any asset at a predetermined price within a defined time frame.

Expiration Date

The date on which an option, futures contract, or insurance policy loses its validity or expires.

Obligated

Required to do something based on legal or moral duties.