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Which of the following statements is true of activity-based costing (ABC)? ABC utilizes a broad average to allocate manufacturing indirect costs. ABC tends to be
Which of the following statements is true of activity-based costing (ABC)?
ABC utilizes a broad average to allocate manufacturing indirect costs.
ABC tends to be more beneficial to firms with complicated manufacturing processes than to firms with simple manufacturing processes.
ABC does not establish a cause-effect relationship for each activity pool.
ABC system is different from a job-order system in the determination of prime costs.
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