Which of the following statements about activity-based costing is NOT true?
A)Activity-based costing is useful for allocating marketing and distribution costs.
B)Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.
C)Activity-based costing seeks to distinguish batch-level, product-sustaining, and facility-sustaining costs, especially when they are not proportionate to one another.
D)Activity-based costing differs from traditional costing systems in that products are not cross-subsidized.

Question

Quizplus · Accepted Answer

This statement is not true because activity-based costing is actually more likely to result in major differences from traditional costing systems if the firm manufactures multiple products, as the costs for each product can be more accurately traced to the specific activities used to produce them.

Which of the Following Statements About Activity-Based Costing Is NOT