Which of the following does not characterize an ABC system, as compared to a traditional costing system?
A)smaller cost pools
B)more cost drivers
C)more homogeneous cost pools
D)focus on activities
E)less expensive to set up and maintain

Question

Quizplus · Accepted Answer

An ABC system is typically more expensive to set up and maintain than a traditional costing system because it involves more detailed analysis and identification of cost drivers and activities. The other choices all characterize an ABC system as compared to a traditional costing system.

Which of the Following Does Not Characterize an ABC System