Activity-Based Costing (ABC)can Refine and Improve Cost Allocations Using Either

question 81

Multiple Choice

Activity-based costing (ABC) can refine and improve cost allocations using either job-order or process cost systems.There are three significant differences between ABC and traditional cost accounting approaches.An ABC system attempts to identify anything that has a cause-and-effect relationship on costs.This cause-and-effect relationship is known as a

• A)cost stimulator.
• B)overhead stimulator.
• C)cost driver.
• D)cost catalyst.

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