Question: Because Activity - Based Costing estimates the resources that each product uses or consumes, it A . computes allocation rates based primarily on direct labor
Because Activity Based Costing estimates the resources that each product uses or consumes, it
A computes allocation rates based primarily on direct labor rates.
B ultimately calculates a single plantwide allocation rate.
C can only be used in companies which have process costing.
D results in more accurate product costs than traditional costing.
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