Which of the Following Statements Is TRUE Regarding Activity-Based Costing

Multiple Choice

Which of the following statements is TRUE regarding activity-based costing systems?

A) ABC systems accumulate overhead costs by departments.
B) ABC costing systems are less complex and, therefore, less costly than traditional systems.
C) ABC costing systems can be used in manufacturing firms only.
D) ABC costing systems have multiple indirect cost allocation rates for each activity.
E) ABC systems provide a greater level of detail to understand how an organization uses its common inputs differently for distinct products.