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) Overhead costs should not be traced to more than one activity.
D) Because of different types of production processes and products, every business will have a different set of activities and cost drivers.

Question

Quizplus · Accepted Answer

Overhead costs can be traced to multiple activities in ABC. This is one of the key features of the ABC system, as it allows for a more accurate allocation of indirect costs to products or services.

Which of the Following Statements Is False Regarding the Identification