Question
Ace Manufacturing allocates overhead using an ABC system that has seven different activity cost pools. Based on this information, we A : can conclude that
Ace Manufacturing allocates overhead using an ABC system that has seven different activity cost pools. Based on this information, we
A : can conclude that Aces system has seven or fewer different cost drivers because multiple cost pools may share the same driver.
B : can conclude that Aces system has seven or more different cost drivers because each cost pool must have a minimum of one driver.
C : can conclude that Aces system has exactly seven different cost drivers because each cost pool must have only one driver.
D : cannot make any conclusions about the number of cost drivers in Aces system.
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