Question: Ace Manufacturing allocates overhead using an ABC system that has seven different activity cost pools. Based on this information, we A : can conclude that

Ace Manufacturing allocates overhead using an ABC system that has seven different activity cost pools. Based on this information, we

A : can conclude that Aces system has seven or fewer different cost drivers because multiple cost pools may share the same driver.

B : can conclude that Aces system has seven or more different cost drivers because each cost pool must have a minimum of one driver.

C : can conclude that Aces system has exactly seven different cost drivers because each cost pool must have only one driver.

D : cannot make any conclusions about the number of cost drivers in Aces system.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

\f