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

question 158

Multiple Choice

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

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

---

Definitions:

College

An institution of higher learning that offers undergraduate degrees and, in some cases, master’s degrees, in a variety of subjects.

Social Allergy Effect

A psychological phenomenon where repeated small irritations in close relationships lead to a significant negative reaction.

Annoyed

The feeling of being irritated or bothered by something or someone, often leading to discomfort or frustration.

Habits

Basically, routine behaviors that are performed regularly and often automatically.