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.

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a. change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. b. eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock. c. for a firm that compensates managers with stock options, reduce the time before options are vested, i.e., the time before options can be exercised and the shares that are received can be sold. d. pay managers large cash salaries and give them no stock options. e. beef up the restrictive covenants in the firm's debt agreements.