Which of the following statements describing a key reason for product cost differences between simple costing systems and abc systems is true?
a. an abc approach attempts to use cost drivers as the allocation base for indirect costs, whereas a simple costing system generally does not.
b. an abc costing system generally utilizes one or very few indirect cost pools to allocate costs, where a simple costing system uses multiple indirect cost pools to allocate costs.
c. the abc costing system has more indirect costs than a simple costing system, which classifies as many indirect costs as direct costs as possible.
d. an abc approach focuses on the units of output as the fundamental cost objects, whereas a simple costing system generally does not.

Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.