Which of the following statements is false regarding the identification of activities in activity-based costing (ABC)?
A) The identification of activities that drive overhead costs is done before cost drivers are selected.
B) An activity can be thought of as a procedure or process that causes work to be accomplished.
C) Each type of overhead cost should be traced to only one activity.
D) An activity that drives overhead costs can occur outside the physical manufacturing facility.

Question

Quizplus · Accepted Answer

Each type of overhead cost can be traced to multiple activities depending on how the cost is being incurred. This allows for a more accurate allocation of costs to products or services.

Which of the Following Statements Is False Regarding the Identification