When using activity-based costing all of the following are true EXCEPT that:
A)all cost drivers should be output unit-level cost drivers
B)there are a great number and variety of cost drivers and cost pools
C)industrial engineering, conference, and regression analysis can be used to estimate slope coefficients
D)the more cost pools, the greater the chance of estimation error

Question

Quizplus · Accepted Answer

Activity-based costing allows for the use of both output unit-level and non-output unit-level cost drivers, meaning that not all cost drivers need to be output unit-level.

When Using Activity-Based Costing All of the Following Are True