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Managerial Accounting

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How Activity Based Costing Works in General

MGRACT-4N1EUU

Unlike traditional "single rate" or plant-wide cost systems, activity-based costing (ABC) assigns costs:

A

to products or jobs based on non-financial variables.

B

based on activities involved in the products or jobs.

C

to products or jobs based on cost driver most related to overhead in total.

D

to product or jobs based on the proportion of direct costs.