Saturday, July 30, 2011

When using activity-based costing all of the following are true EXCEPT that

ACCOUNTING

Multiple Choice

When using activity-based costing all of the following are true EXCEPT that

a. all cost drivers should be output unit-level cost drivers.

b. there are a great number and variety of cost drivers and cost pools.

c. industrial engineering, conference, and regression analysis can be used to estimate slope coefficients.

d. the more cost pools, the greater the chance of estimation error.

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