Difference between a Traditional System and an ABC System Which one of the following statements best summarizes the difference between a traditional overhead allocation system and an ABC system?

a. With a traditional system, overhead costs are first allocated to products; with ABC, overhead costs are first allocated to activities.

b. With a traditional system, overhead costs are first allocated to activities; with ABC, overhead costs are first allocated to departments.

c. With a traditional system, overhead costs are first allocated to departments; with ABC, overhead costs are first allocated to divisions.

d. With a traditional system, overhead costs are first allocated to products; with ABC, overhead costs are first allocated to departments.