In Comparing a Traditional Costing Systems with an Activity-Based Costing

Multiple Choice

In comparing a traditional costing systems with an activity-based costing system, which of the following would be considered a feature of a traditional cost system?

A) Dividing a large cost pool into multiple and varied smaller cost pools
B) Using a generic cost driver to allocate costs
C) Using activities undertaken in the value chain to determine smaller cost pools
D) Using relevant cost drivers to allocate costs