What is characteristic of approximately relevant ABC system?
A)All activities still are separated into pools; they are allocated on estimated activity levels.
B)Only the most expensive activities are allocated using appropriate cause-and-effect drivers.
C)Cost pools are limited to only two cost pools.
D)Cost pools are created for every activity.

Question

Quizplus · Accepted Answer

Approximately relevant ABC (Activity-Based Costing) systems focus on allocating costs of the most expensive or significant activities using appropriate cause-and-effect drivers, simplifying the process by not treating all activities with the same level of detail.

What Is Characteristic of Approximately Relevant ABC System