Regarding Activity-Based Costing Systems, Which of the Following Statements Is

question 95

Multiple Choice

Regarding activity-based costing systems, which of the following statements is true?

• A)ABC systems accumulate overhead costs by departments.
• B)ABC costing systems are less complex and, therefore, less costly than traditional systems.
• C)ABC costing systems have separate indirect cost allocation rates for each activity.
• D)ABC costing systems can be used in manufacturing firms only.

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