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Business, 10.10.2019 23:00 kevin7334

Which of the following statements describing a key reason for product cost differences between simple costing systems and abc systems is true?
a. an abc approach attempts to use cost drivers as the allocation base for indirect costs, whereas a simple costing system generally does not.
b. an abc costing system generally utilizes one or very few indirect cost pools to allocate costs, where a simple costing system uses multiple indirect cost pools to allocate costs.
c. the abc costing system has more indirect costs than a simple costing system, which classifies as many indirect costs as direct costs as possible.
d. an abc approach focuses on the units of output as the fundamental cost objects, whereas a simple costing system generally does not.

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