If products are different, then for costing purposes:
A)an ABC costing system will yield more accurate cost numbers
B)a simple costing system should be used
C)a single indirect-cost rate should be used
D)none of the above

Question

Quizplus · Accepted Answer

If products are different, it means they may have different cost drivers and allocation bases. Therefore, a more refined costing system like ABC (Activity-Based Costing) can identify and allocate costs more accurately than a simple costing system or a single indirect-cost rate.

If Products Are Different, Then for Costing Purposes