ABC Systems Differ from Traditional Systems in That ABC Systems

question 125

Multiple Choice

ABC systems differ from traditional systems in that ABC systems:

• A) Trace direct costs to cost objects
• B) Use multiple cost pools and cost drivers to allocate direct costs
• C) Use multiple cost pools and cost drivers to allocate overhead costs
• D) Assign costs only to units of product

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Definitions:

Dishwashers

Appliances designed for automatically cleaning dishes, cutlery, and other utensils, significantly reducing manual labor in kitchens.

Manufacturing Cost

The total expense related to the production of goods, including labor, materials, and overhead costs.

Metal Price

The cost of purchasing a specific type of metal on the market, influenced by factors such as supply, demand, and geopolitical events.