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ABC Provides More Accurate Product Costs Than Traditional Costing Because

Question 106

Multiple Choice

ABC provides more accurate product costs than traditional costing because


A) Traditional costing uses fewer cost pools for indirect costs
B) Traditional costing is less likely to have indirect cost pools with similar cost behavior
C) Activities are measurable events, and activity counts often make good cost drivers in ABC because there is a better cause-and-effect relationship with costs
D) All of the above

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