Which of the following statements is false?
A) ABC can weaken control over overhead costs.
B) Under ABC, companies can trace many overhead costs directly to activities.
C) ABC allows some indirect costs to be identified as direct costs.
D) managers become more aware of their responsibility to control the activities that generate costs.

Question

Quizplus · Accepted Answer

ABC is a method to enhance control over overhead costs by providing more accurate and detailed information about the activities that generate those costs. Therefore, statement A is false.

Which of the Following Statements Is False