Which of the Following Statements Is False Regarding the Identification

question 67

Multiple Choice

Which of the following statements is false regarding the identification of activities in activity-based costing (ABC) ?

• A) The identification of activities that drive overhead costs is done before cost drivers are selected.
• B) An activity can be thought of as a procedure or process that causes work to be accomplished.
• C) Each type of overhead cost should be traced to only one activity.
• D) An activity that drives overhead costs can occur outside the physical manufacturing facility.

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