Which of the Following Statements Is True of Activity-Based Costing

question 214

Multiple Choice

Which of the following statements is true of activity-based costing?

• A) ABC ignores the allocation of marketing costs.
• B) ABC classifies some indirect costs as direct costs.
• C) ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.
• D) Activities are the cost objects of the second stage of ABC.

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