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.

The cutting department of cassel company has the following production and cost data for july. production costs 1. transferred out 12,300 units. beginning work in process $0 2. started 3,900 units that are 60% materials 62,856 complete as to conversion labor 12,622 costs and 100% complete as manufacturing overhead 23,100 to materials at july 31. materials are entered at the beginning of the process. conversion costs are incurred uniformly during the process. determine the equivalent units of production for (1) materials and (2) conversion costs. materials conversion costs total equivalent units of production link to text link to text compute unit costs. (round unit costs to 2 decimal places, e. g. 2.25.) materials $ conversion costs $ link to text link to text prepare a cost reconciliation schedule. (round unit costs to 2 decimal places, e. g. 2.25 and final answers to 0 decimal places, e. g. 1,225.) cost reconciliation costs accounted for transferred out $ work in process, july 31 materials $ conversion costs total costs $