Which of the following statements is true of ABC systems?
A) ABC system will always result in higher product costs.
B) ABC system employs multiple activity-cost drivers.
C) ABC system is least suited for service companies.
D) ABC system is simpler compared to traditional systems.

Question

Quizplus · Accepted Answer

ABC system employs multiple activity-cost drivers to allocate overhead costs, which provides more accurate product costs. The other options are incorrect.

Which of the Following Statements Is True of ABC Systems