An Activity-Based Cost System

question 5

Multiple Choice

An activity-based cost system

• A)differs from a traditional-based cost system in the nature and number of the cost drivers used.
• B)uses both unit-based and nonunit-based cost drivers that reflect a cause-and-effect relationship.
• C)can trace cost accurately to cost objects other than products.
• D)does all of the above.

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Definitions:

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