Which of the Following Is Generally True When a Company

question 66

Multiple Choice

Which of the following is generally true when a company compares activity-based costing (ABC) and traditional volume-based costing?

• A)ABC uses fewer cost drivers in an effort to reduce total costs.
• B)ABC allocates costs based primarily on production volume.
• C)ABC is less expensive.
• D)ABC is less likely to undercost complex, low-volume products.