Question

ABC systems:_____.

a. highlight the different levels of activities.
b. will limit cost drivers to units of output.
c. will allocate costs based on the overall level of activity.
d. generally will undercost complicated or complex products.

Answer 1

Answer: highlight the different levels of activities.

Step-by-step explanation:

The activity-based costing (ABC) system is an accounting method that is used by a company to calculate the total cost of activities that'll be utilized when making a product.

In the activity based costing system, costs are being assigned to every that is used during production. Also, the direct cost and the overhead costs are being considered. In ABC system, the different levels of activities are highlighted.