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

question 28

Multiple Choice

Which of the following statements about activity-based costing is NOT true?

• A)ABC is useful for allocating marketing and distribution costs.
• B)ABC is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.
• C)ABC seeks to distinguish batch-related, product-sustaining, and business-sustaining costs, especially when they are not proportionate to one another.
• D)ABC differs from traditional costing systems in that products are not cross-subsidized.

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