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)the more cost pools,the greater the chance of estimation error.
D)industrial engineering,conference,and regression analysis can be used to estimate slope coefficients.

Question

Quizplus · Accepted Answer

In activity-based costing, not all cost drivers should be output unit-level cost drivers. Instead, multiple cost drivers related to various activities can be used, including batch-level, product-level, and customer-level cost drivers.

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