Activity Based Costing Attempts To

Multiple Choice

Activity based costing attempts to:

A) correct the distortions built into product costing by the way that direct costs are allocated.
B) correct the distortions built into product costing by the way that the learning curve is applied to direct labor costs.
C) turn indirect costs into direct costs by tracking the cost drivers behind indirect costs.
D) turn direct costs into indirect costs by tracking the cost drivers behind direct costs.
E) introduce a new way to allocate direct costs that more accurately captures labor and material usage.