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Consider the Situation Where an Activity-Based Costing System Is in Use

Question 57

Multiple Choice

Consider the situation where an activity-based costing system is in use rather than a conventional volume-based costing system.Which of the following statements is/are true?


A) The relevant cost decision model would be inappropriate if activity-based costing is used.
B) The relevant cost decision model is still appropriate,but a different decision criterion must be used.
C) The data collection and analysis step is going to be affected by the use of non-volume-related cost drivers.
D) The relevant cost decision model would be inappropriate if activity-based costing is used AND the data collection and analysis step is going to be affected by the use of non-volume-related cost drivers.

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