The product cost for the

includes all production, marketing, and customer service costs. There may be$,$ and very likely is$,$ very little R&D function in the Cable Service Division. Thus, this

unit cost could be used for other managerial objectives, such as product mix decisions and strategic and tactical profitability analysis. The

cost includes only production costs; complying with external financial reporting guidelines is the primary managerial objective of this method.

b$.$ Allocation relies on:

c$.$ Direct tracing relies on:

d$.$ Driver tracing relies on:

e$.$ Based on how costs are assigned, do you think that the Cable Service Division is using a functional$-$based or an activity$-$based costing system?