An activity-based costing system usually involves a fewer number of allocations compared with a traditional cost allocation system.

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Activity-based costing (ABC) typically involves more allocations because it assigns costs to activities based on their use of resources, aiming to more accurately reflect the consumption of resources by different products or services, unlike traditional cost allocation systems which often use broader, less precise methods.

An Activity-Based Costing System Usually Involves a Fewer Number of Allocations