Multiple Choice
Answer the following question(s) using the information below.Products S5 and CP8 each are assigned $50.00 in indirect costs by a traditional costing system.An activity analysis revealed that although production requirements are identical, S5 requires 45 minutes less setup time than CP8.
-According to an ABC system, S5 uses a disproportionately
A) smaller amount of unit-level costs.
B) larger amount of unit-level costs.
C) smaller amount of product-sustaining costs.
D) larger amount of batch-level costs.
E) smaller amount of batch-level costs.
Correct Answer:

Verified
Correct Answer:
Verified
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