ABC systems use the concept of a ________ to identify the cost drivers that best demonstrate the cause-and-effect relationship between each activity and the costs in the related cost pool.
A) cost hierarchy
B) customer -cost analysis
C) cost allocation
D) variance analysis

Question

Quizplus · Accepted Answer

ABC systems use a cost hierarchy to identify the cost drivers that best demonstrate the cause-and-effect relationship between each activity and the costs in the related cost pool. The cost hierarchy includes four categories: unit-level activities, batch-level activities, product-level activities, and facility-level activities.

ABC Systems Use the Concept of a ________ to Identify