Question: An activity - based costing ( ABC ) system may provide different results than the traditional system because most companies make more than one product.
An activitybased costing ABC system may provide different results than the traditional system because
most companies make more than one product.
the products do not all require the same proportionate shares of overhead resources.
ABC generates a product cost that is less than competitors' prices allowing selling prices to be set lower than if traditional? was used.
there are often errors in traditional cost allocations.
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