Characteristics of Activity-Based Costing Include

question 65

Multiple Choice

Characteristics of activity-based costing include:

• A) a greater number of overhead cost application bases compared to traditional costing systems.
• B) the overhead cost application bases are likely to be more accurate cost drivers than would be the case in traditional costing systems.
• C) the simplicity of the system makes it easy to implement.
• D) a greater number of overhead cost application bases compared to traditional costing systems AND the overhead cost application bases are likely to be more accurate cost drivers than would be the case in traditional costing systems.

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Definitions:

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