Activity-based costing systems:

Multiple Choice

a.use a single, volume-based cost driver.

b.assign overhead to products based on the products' relative usage of direct labor.

c.often reveal products that were under- or over-costed by traditional costing systems.

d.typically use fewer cost drivers than more traditional costing systems.

e.have a tendency to distort product costs.

q2

The incremental-cost approach looks at the difference in the NPVs of the cost of each relevant item under two alternatives in an analysis.

True or False

TrueFalse