Which of the Following Is True Regarding Activity-Based Costing (ABC)

Which of the following is true regarding activity-based costing (ABC) ?

A) The benefits of using ABC always outweigh its limitations.
B) The lower the proportion of overhead costs as compared to direct materials and direct labor costs, the more likely a company will benefit by using ABC.
C) Companies with a high-proportion of non-unit-level costs should rarely use ABC.
D) High measurement costs associated with ABC may deter some companies from its use.

Correct Answer:

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