Which of the Following Statements Concerning an Activity-Based Cost (ABC)

Multiple Choice

Which of the following statements concerning an activity-based cost (ABC) system is(are) correct?

A) ABC analysis illuminates exactly what activities are associated with a particular product or customer segment and how these activities are linked to the generation of revenues and the consumption of resources.
B) ABC analysis often relies on percentage allocations that are somewhat arbitrary.
C) ABC analysis segregates the expenses of indirect and support resources by activities.
D) all of the answer choices.
E) Both ABC analysis illuminates exactly what activities are associated with a particular product or customer segment and how these activities are linked to the generation of revenues and the consumption of resources and ABC analysis segregates the expenses of indirect and support resources by activities.