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In Which Way Does Activity-Based Costing (ABC)improve Cost Assignment

Question 84

Multiple Choice

In which way does activity-based costing (ABC) improve cost assignment?


A) Management is provided with true costs.
B) ABC uses a greater number of cost pools and cost drivers than traditional overhead allocation techniques.
C) ABC follows generally accepted accounting principles more closely.
D) ABC is easier to use than traditional overhead allocation techniques.

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