Activity-based costing normally allocates overhead costs
A)to products only.
B)more accurately than traditional costing systems.
C)to services, where as traditional costing systems normally allocate overhead costs to products.
D)based on no more than three cost drivers.

Question

Quizplus · Accepted Answer

Activity-based costing is designed to allocate overhead costs more accurately than traditional costing systems by identifying multiple cost drivers that affect overhead costs, rather than just a single cost driver as in traditional costing systems.

Activity-Based Costing Normally Allocates Overhead Costs