Under the ABC philosophy

A) all inventories should be reduced or eliminated.
B) the push approach should be used in the first department of a process and the pull approach should be used in all subsequent departments.
C) the cost of a product is equal to the sum of the costs of all activities performed to manufacture it.
D) only one cost driver can be used.

ABC Philosophy

Stands for Activity-Based Costing, a philosophy that allocates overhead and indirect costs to specific activities, leading to more accurate product or service costing.

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Cost Driver

A factor that causes a change in the cost of an activity or operation.