Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Chess Woods Limited produces two products: wooden chess pieces and wooden inlaid chess boards.Under their traditional cost system using one cost driver (direct manufacturing labour hours) ,the cost of a set of wooden chess pieces is $325.00.An analysis of the activities and their costs revealed that three cost drivers would be used under a new ABC system.These cost drivers would be equipment usage,storage area for the material and types of wood used.The new cost of a set of chess pieces was determined to be $298.00 per set.
-What is the goal of a properly constructed ABC system?

A) Identify more indirect costs
B) Have separate allocation rates for each department
C) Develop the best cost system for an economically viable cost
D) Have the most accurate cost system