Describing a key reason for product cost

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Reference no: EM13792327

Which of the following statement describing a key reason for product cost differences between simple costing systems and ABC systems is true?

A. The ABC costing system has more indirect costs than a simple costing system, which classifies as many indirect costs as direct costs as possible.

B. An ABC costing system generally utilizes one or very few indirect cost pools to allocate costs, where a simple costing system uses multiple indirect cost pools to allocate costs.

C. An ABC approach focuses on the units of outputs as the fundamental cost objects, whereas a simple costing system generally does not.

D. An ABC approach attempts to use cost drivers as the allocation base for indirect costs, whereas a simple costing system generally does not.

Reference no: EM13792327

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