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Answer the Following Questions Using the Information Below

Question 4

Multiple Choice

Answer the following questions using the information below:
Cannady produces six products.Under their traditional cost system using one cost driver,SR6 costs $168.00 per unit.An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system.The new cost of SR6 was determined to be $178.00 per unit.
-The total amount of indirect costs assigned to product SR6 using the traditional method is ________ the total amount assigned using ABC.


A) more than
B) identical to
C) less than
D) None of these answers are correct.

Correct Answer:

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