Which of the following statements is FALSE?
A) Activity-based accounting systems classify more costs as indirect than do traditional systems.
B) Activity-based accounting systems can create more accurate product costs.
C) Activity-based accounting systems are more complex and costly than traditional systems.
D) Activity-based accounting systems are used in both manufacturing and nonmanufacturing industries.

Question

Quizplus · Accepted Answer

Activity-based accounting systems actually classify more costs as direct rather than indirect because they focus on tracing costs to specific activities that contribute to the product.

Which of the Following Statements Is FALSE