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

question 73

Multiple Choice

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

• A)ABC ignores the allocation of storage costs.
• B)An activity cost pool collects costs related to the same activity.
• 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.
• E)ABC uses a single overhead rate.

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