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Which of the following statements concerning the activity-based costing (ABC) template is correct (assume the two-column approach taught in class is used)? A. Cost
Which of the following statements concerning the activity-based costing (ABC) template is correct (assume the two-column approach taught in class is used)? A. Cost distortion does not exist if the MOH allocated to a cost object under traditional costing is the same as the MOH allocated to the same cost object under ABC. OB. If the cost object is being overcosted, the total cost calculated in the ABC column will be higher than the total cost calculated in the traditional column. OC. If a company has four cost objects, the cost distortion for two of the objects chosen at random would always be equal and offsetting." OD. None of the above statements are correct. OE. Direct material and direct labor for a specific cost object differ between the traditional and the ABC columns.
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