1. The ABC method can be used in:

a. Manufacturing companies

b. Service companies

c. Manufacturing companies and service companies

d. None of the above.

2. Companies that use ABC are characterized by:

a. Diversity and complexity of operations

b. Simple manufacturing systems

c. They make very few products

d. They manufacture a single product

3. Which of the following is a characteristic of ABC?

a. As many direct costs as possible are identified, not just raw materials and labor

b. Cost drivers are identified

c. Activity costs are assigned to products or services

d. All of the above