Economics · Cost Accounting
Which of the following is a primary characteristic of Activity-Based Costing (ABC)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It uses cost drivers and cost pools to assign overhead costs✓
- 2It avoids all subjective apportionment of overheads
- 3It directly alters the total value of direct costs
- 4It is applicable only in the service sector
Correct answer
It uses cost drivers and cost pools to assign overhead costs
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