MAC3701

Which one of the following is not a characteristic of activity-based-costing (“ABC”) system? A. Because of the extensive number of cost drivers that must be identified and measured, this costing system can be prohibitively expensive to implement and operate. B. The allocation basis is referred to as ‘cost driver’, as a cause-and-effect relationship exists between cost and allocation basis. C. Multiple overhead rates can be calculated, one per department or cost centre. D. Overhea...