Which of the Following Statements Is True with Regard to Activity-Based

question 148

Multiple Choice

Which of the following statements is true with regard to activity-based costing rates?

• A)The premise of ABC is that activities are what cause costs to be incurred.
• B)ABC is another way to refer to a multiple departmental rate situation.
• C)There one basic stage to ABC.
• D)ABC is simpler and less expensive to implement than other traditional methods of allocating overhead costs.
• E)All cost drivers used to determine the rates will be unit-level drivers.

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