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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.

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santyborca

Answer:

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

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.

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