Activity-based costing systems do not:
A) determine a cause and effect relationship with respect to cost and cost drivers.
B) improve the accuracy of the costs allocated to the various products.
C) create homogenous cost pools that are activity based.
D) create a variety of direct manufacturing cost pools.

Question

Quizplus · Accepted Answer

Activity-based costing systems focus on indirect costs and allocate them based on activities, not on creating direct manufacturing cost pools.

Activity-Based Costing Systems Do Not