Answer the following question(s)using the information below.Products S5 and CP8 each are assigned $50.00 in indirect costs by a traditional costing system.An activity analysis revealed that although production requirements are identical, S5 requires 45 minutes less setup time than CP8.
-According to an ABC system, S5 uses a disproportionately
A)smaller amount of unit-level costs.
B)larger amount of unit-level costs.
C)smaller amount of product-sustaining costs.
D)larger amount of batch-level costs.
E)smaller amount of batch-level costs.

Question

Quizplus · Accepted Answer

S5 requires less setup time than CP8, indicating it uses a smaller amount of batch-level costs, as setup time is typically a batch-level activity.

Answer the Following Question(s)using the Information Below