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Which of the Following Statements About Activity Based Costing Is

Question 39

Multiple Choice

Which of the following statements about activity based costing is not true?


A) Activity based costing differs from traditional costing systems in that products are not cross subsidized
B) In activity based costing, cost drivers are usually what cause costs to be incurred
C) Activity based costing is more likely to result in major differences from traditional costing systems if . the firm manufactures only one product rather than multiple products
D) Activity based costing is useful for allocating marketing and distribution costs

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