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

question 92

Multiple Choice

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

• A) There is a clear cause-and-effect relationship between costs and the cost driver in the long run.
• B) There is no variety of cost drivers and cost pools.
• C) The system focuses on activities in together and not on individual activities.
• D) A single cost driver should be identified for all the activities.

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