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By isolating the cost of unused capacity, Activity-Based Costing (ABC) helps management: a.   investigate the underlying...

By isolating the cost of unused capacity, Activity-Based Costing (ABC) helps management:

a.   investigate the underlying reason for the unused capacity.

b.   include the cost of unused capacity in selling price decisions.

c.   find ways to increase unused capacity.

e.   a, b, and c.

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Answer #1

Please find below the solution.. let me know if you need any clarification..

correct answer is option : e.   a, b, and c.

All the options are correct, therefore answer is option e.

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