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Which of the Following Statements Is True of Activity-Based Costing

Question 92

Multiple Choice

Which of the following statements is true of activity-based costing?


A) There is a clear cause-and-effect relationship between costs and the cost driver in the long run.
B) There is no variety of cost drivers and cost pools.
C) The system focuses on activities in together and not on individual activities.
D) A single cost driver should be identified for all the activities.

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