Question: Company A allocates overhead costs using activity - based costing. Company B uses direct labor hours to allocate all overhead costs. Which of the following

Company A allocates overhead costs using activity-based costing. Company B uses direct labor hours to allocate all overhead costs. Which of the following is true?
Company As total sales amount would be more accurate than Company Bs.
Company As cost of goods sold would be more accurate than Company Bs.
Company As gross margin would be more accurate than Company Bs.
Both Company As cost of goods sold and gross margin would be more accurate than Company Bs.

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