Which one of the following statements best summarizes the difference between a traditional overhead allocation system and
Question:
a. With a traditional system, overhead costs are first allocated to products; with ABC, overhead costs are first allocated to activities.
b. With a traditional system, overhead costs are first allocated to activities; with ABC, overhead costs are first allocated to departments.
c. With a traditional system, overhead costs are first allocated to departments; with ABC, overhead costs are first allocated to divisions.
d. With a traditional system, overhead costs are first allocated to products; with ABC, overhead costs are first allocated to departments.
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Related Book For 
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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