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Activity-based costing

Which of the following statements is correct?

A) Traditional costing systems allocate both manufacturing costs and non-manufacturing costs
B) Activity-based costing systems allocate only manufacturing costs
C) Activity-based costing systems allocate both manufacturing costs and non-manufacturing costs
D) Traditional costing systems tend to be more accurate and less expensive
E) All of the above

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Solution Summary

The response discusses the impact activity-based costing.

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