Which of the Following Statements Is Typically Not True About

question 33

Multiple Choice

Which of the following statements is typically not true about activity based costing?

• A) Improves the tracing of costs to the product or service that consumed the cost
• B) Helps to identify costs that were arbitrarily allocated in the past using a volume based driver, such as direct labor
• C) Identifies the true (or more logical) drivers of indirect costs
• D) ABC is used by the majority of major corporations throughout the world
• E) Examples of cost drivers used in ABC include: number of orders, length of setups, engineering changes

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