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Activity-Based Costing (ABC)can Eliminate Cost Distortions Because ABC

Question 109

Multiple Choice

Activity-based costing (ABC) can eliminate cost distortions because ABC:


A) develops cost drivers that directly link the activities performed to the products manufactured.
B) establishes multiple cost pools.
C) employs capacity-related cost drivers.
D) recognizes interactions between different departments in assigning overhead costs.

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