Question

Abc generally causes the least amount of cost distortion among products because indirect costs are allocated to the products based on

Answer 1

Answer:

Cost Drivers

Explanation:

Abc generally causes the least amount of cost distortion among products because indirect costs are allocated to the products based on  cost drivers.

Activity Based Costing does not apportion indirect costs but allocates them to products based on the level at which they drive those costs.

Cost driving is based on which activities or overheads are used by a product and by how much does it use (drive) those activities.