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There Are Several Advantages to Using Activity-Based Costing

Question 3

Multiple Choice

There are several advantages to using activity-based costing.Which of the following is one of these advantages?


A) Services not performed in a department are allocated a portion of the cost of operating that department.
B) Each department can choose the activity base that relates best to its cost.
C) Simplified costing is time-consuming and expensive to administer.
D) Activity-based rates are much less time-consuming to prepare.

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