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

question 117

Multiple Choice

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

• A) It does not affect cost control.
• B) Indirect cost allocation bases are unlikely to be cost drivers.
• C) It provides less information than traditional cost systems.
• D) It provides similar results to traditional costing when one activity creates a substantial amount of total cost.
• E) It provides similar results to traditional costing when different products use resources from different activities in different proportions.

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