What is costing system refinement? What are the three guidelines for refinement?Costing system refinementA. describes a costing approach that uses broad averages for assigning the cost of resources uniformly to cost objects when the individual products or senvices. in fact, use those resources in non-uniform ways.0. describes an event, lask, or unit of work with a specified purpose. Consistent with its more strategic focus, costing system refinement identies activities in all functions of the value chain. Costing system refinement first calculates the costs of individual activities and then assigns costs to cost otjects such as products and services on the basis of the mix of activities needed to produce each product or service.C. means making changes to a simple costing system that reduces the use of broad averages for assigning the cost of resources to cost otjects and provides better measurement of the costs of overhead resources used by different cost otjects.D. is a process used to categorize various activity cost pools on the basis of the different types of cost drivers, or cost-alocation bases, or different degrees of difficily in determining cause-and-ettect (or benefits-received) relationships.The three guidelines for refinement include: A.1. Set cost reduction targets in terms of reducing the cost per unit of a cost-allocation base in different activity areas.2. Perform an analysis of the factors that cause costs to be incurred (cost drivers) in order to identity opportunities for improving the way work is done.3. Evaluate whether particular norvalue-added activities can be reduced or eliminated.B.1. Identify the products that are the chosen cost objects.2. Identify the direct and indirect costs of the products.3. Compute the total cost of the products by adding all direct and indirect costs assigned to the products.C.1. Select the activities and cost-allocation bases to use for allocating indirect costs to the products.2. Identify the indirect costs assocjated with each cost-allocation base.3. Compute the rate per unit of each cost-allocation base.D.1. Cisssity as many of the total costs as direct costs as is economically feasible.2. Expand the number of indirect cost pools until each of these pools is more homogenous.3. Use the cause-and-effect criterion, when possible, to identify the cost-allocation base for each indirect-cost pool.