An activity-based cost system
A)differs from a traditional-based cost system in the nature and number of the cost drivers used.
B)uses both unit-based and nonunit-based cost drivers that reflect a cause-and-effect relationship.
C)can trace cost accurately to cost objects other than products.
D)does all of the above.

Question

Quizplus · Accepted Answer

An activity-based cost system differs from a traditional-based cost system by using nonunit-based cost drivers that reflect a cause-and-effect relationship. It can trace costs accurately to cost objects other than products. Therefore, the correct answer is D as it does all of the above.

An Activity-Based Cost System