Which of the Following Statements Is True of Implementing an ABC

question 131

Multiple Choice

Which of the following statements is true of implementing an ABC system?

• A) Managers should never compromise on the cause-and-effect relationship of cost drivers and costs.
• B) The three guidelines for refining costing systems should be ignored while implementing an ABC costing system.
• C) The heterogeneous cost pools give managers greater confidence in the activity and product cost numbers from the ABC system.
• D) Identifying the cost-allocation bases defines the number of activity pools into which costs must be grouped in an ABC system.

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