ABC Systems Differ from Traditional Costing Systems Because ABC Systems

question 21

Multiple Choice

ABC systems differ from traditional costing systems because ABC systems use

• A) Multiple activity cost pools and cost drivers to allocate overhead costs
• B) More automation and information technology to allocate overhead costs
• C) Less automation and information technology to allocate overhead costs
• D) a and b

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Definitions:

Relevant

Pertains to something closely connected or appropriate to what is being done or considered.

Aspirational

Pertaining to products, brands, or lifestyles that consumers admire and desire to obtain, often because they symbolize a higher social status or idealized self-image.

Time-Specific

Refers to strategies, actions, or goals that are planned with a particular time frame in mind.

CRM Software

Technology platforms designed to manage a company's interactions with current and potential customers, integrating and automating sales, marketing, and customer support.