ABC systems create ________.
A) one large cost pool
B) homogeneous activity-related cost pools
C) activity-cost pools with a broad focus
D) activity-cost pools containing many direct costs

Question

Quizplus · Accepted Answer

ABC systems create homogeneous activity-related cost pools, meaning that costs are grouped together based on similar activities or cost drivers. This allows for a more accurate allocation of costs to products, services, or customers based on the specific activities that are driving those costs. The other options are not accurate descriptions of ABC systems.

ABC Systems Create ________