Question

Activity-based costing systems: Multiple Choice

use a single, volume-based cost driver.
assign overhead to products based on the products' relative usage of direct labor.
often reveal products that were under- or over-costed by traditional costing systems.
typically use fewer cost drivers than more traditional costing systems.
have a tendency to distort product costs.

Answer 1

Assign overhead to products based on the products´ relative usage of direct labor.

Step-by-step explanation:

It is an accounting method. Recognizes the relationship between costs, overhead activities, and manufactured products. By doing this relation the assignation of indirect costs is less arbitrarily than traditional methods. It is very used in the manufacturing sector.

I hope this answer helps you.