Which of the following explain why activity-based costing improves product cost accuracy when compared to traditional methods?

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Which of the following explain why activity-based costing improves product cost accuracy when compared to traditional methods? (You may select more than one answer.)

a. Activity-based costing typically uses more cost pools than traditional methods.

b. Activity-based costing assigns direct labor costs to products, whereas traditional methods do not.

c. Activity-based costing often uses a plantwide overhead allocation, whereas traditional methods do not.

d. Activity-based costing uses a variety of activity measures to assign overhead costs to products, some of which are correlated with volume and some of which are not.

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Related Book For  book-img-for-question

ISE Introduction To Managerial Accounting

ISBN: 9781260091755

8th Edition

Authors: Peter Brewer, Ray Garrison, Eric Noreen

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