Both Traditional and Activity-Based Costing Have Certain Features That May

Multiple Choice

Both traditional and activity-based costing have certain features that may make them unique in comparison. Which of the following traits is most closely aligned with activity-based costing?

A) It is used primarily for financial reporting for external users.
B) It separates total MOH into smaller activity pools and uses related cost drivers.
C) It uses a predetermined MOH rate along with one cost driver.
D) Its purpose is to systematically allocate a company's Manufacturing Overhead (MOH) costs to each job.