Question: How does activity - based costing ( ABC ) differ from traditional costing systems?ABC is primarily used for financial reporting purposes.B ) ABC uses a
How does activitybased costing ABC differ from traditional costing systems?ABC is primarily used for financial reporting purposes.B ABC uses a single predetermined overhead rate for all products. ABC relies solely on direct labor hours for cost allocation.ABC excludes indirect costs from the calculation of product costs.E ABC assigns overhead costs based on various cost drivers and activities.
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