Which of the Following Statements Is Correct About the Differences

Multiple Choice

Which of the following statements is correct about the differences between a volume-based cost system and an ABC system?

A) The only difference is how the methods assign indirect costs to products.
B) The only difference is how the methods assign direct costs to products.
C) The methods assign both direct and indirect costs differently to products.
D) There is no difference in how the methods assign direct or indirect costs to products.