Tiny Timber Tree Farms Has Decided to Adopt Activity-Based Costing

Multiple Choice

Tiny Timber Tree Farms has decided to adopt activity-based costing.Which of the following is one likely reason the firm's accountants decided on this approach?

A) to move from a system that focuses on assigning costs to goods and services to a system that assigns costs to activities
B) to simplify the process of assigning costs to specific products
C) to base costing on the amount of direct labour used to produce each product
D) to provide a more meaningful way to assign overhead costs to specific products