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Question(s) / Instruction(s):

Historically, many companies have used product profitability systems that had a single direct-cost category and a single indirect-cost.     In changing to an activity-based costing system, an organization is required to   

A.            has more than one single direct-cost category

B.            determine how the products use the resources of the organization

C.            has more than one single direct-and indirect-cost category

D.            change from a product profitability system to an ABC costing system

E.            use as many direct- and indirect-cost categories as possible

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