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RideAnS [48]
3 years ago
6

Activity-based costing (ABC) can eliminate cost distortions because ABC: A. develops cost drivers that directly link the activit

ies performed to the products manufactured. B. establishes multiple cost pools. C. employs capacity-related cost drivers. D. recognizes interactions between different departments in assigning overhead costs.
Business
1 answer:
Bas_tet [7]3 years ago
6 0

Answer:

A. develops cost drivers that directly link the activities performed to the products manufactured.

Explanation:

ABC identifies the activities and according to that the cost are distributed that based on the predetermined overhead rate. So it also helps in removing the distortions of the cost so that drivers of the cost could be identified that are applied for the cost distribution for the activities that are performed

Therefore the option a is correct

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Answer:

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= Weightage of debt × cost of debt × ( 1- tax rate)  + (Weightage of  common equity × (cost of common equity)

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This is the answer and the same is not provided in the given options

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2 years ago
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