Which of the following statements is false regarding activities in an ABC system?
A) As a business becomes more complex, more activities will probably need to be identified.
B) Two different manufacturing companies that make the same products may come up with different sets of activities and cost drivers.
C) The maximum number of activities that should be identified as batch-level is two.
D) Overhead costs may be allocated to more than one activity.

Question

Quizplus · Accepted Answer

There is no maximum number of activities that can be identified as batch-level in an ABC system. The number of activities identified depends on the complexity of the business processes.

Which of the Following Statements Is False Regarding Activities in an ABC