Question: Compared to a traditional cost allocation system that allocates costs to products based on labor hours, an ABC system is likely to: a. Allocate

Compared to a traditional cost allocation system that allocates costs to products

 

Compared to a traditional cost allocation system that allocates costs to products based on labor hours, an ABC system is likely to: a. Allocate more costs to high- versus low-volume products. b. Allocate less costs to high- versus low-volume products. c. Allocate the same amount of costs to high- and low-volume products. d. Allocate less costs to highly specialized products.

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