Question: Activity-based costing systems: Multiple Choice use a single, volume-based cost driver. assign overhead to products based on the products' relative usage of direct labor. often

Activity-based costing systems:

Multiple Choice

  • use a single, volume-based cost driver.
  • assign overhead to products based on the products' relative usage of direct labor.
  • often reveal products that were under- or over-costed by traditional costing systems.
  • typically use fewer cost drivers than more traditional costing systems.
  • have a tendency to distort product costs.

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