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Unformatted text preview: replaces a traditional costing system? Cost pools Cost allocation bases A. No effect No effect B. Increase No effect C. No effect Increase D. Increase Increase 4. Which of the following is NOT a characteristic of ABC? A. Operating personnel play a key role in identifying the individual activities. B. It is usually difficult to find a good cause-and-effect relationship between a cost allocation base and organization sustaining costs. C. There are many homogenous indirect cost pools. D. Cost allocation bases of indirect cots pools are usually financial in nature. 5. ABC tends to pass the cost-benefit test for companies with: A. operations that are relatively simple. B. many products that use different amounts of resources. C. many products that use about the same amount of resources. D. few products that use about the same amount of resources....
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