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:

Intersecting Lines

Lines that meet or cross at one point, sharing exactly one point in common.

Visual Cliff

A psychological experimental apparatus that uses a visual illusion to examine perception and understanding of depth in infants.

Depth Perception

The visual ability to perceive the world in three dimensions and the distance of an object.

Retinal Disparity

The slight difference in the two retinal images due to the angle from which each eye views an object, contributing to depth perception.