Activity-Based Costing (ABC) Can Eliminate Cost Distortions Because ABC Systems

Multiple Choice

Activity-based costing (ABC) can eliminate cost distortions because ABC systems ________.

A) establish a cause-and-effect relationship with the activities performed
B) use single cost pool for all overhead costs, thereby enabling simplicity
C) use a broad average to allocate all overhead costs
D) never consider interactions between different departments in assigning support costs