Select the Incorrect Statement from the Following

question 85

Multiple Choice

Select the incorrect statement from the following.

• A) If overhead costs are allocated based on activities, the amount of overhead allocated to a particular product can be reduced by increasing the number of activities required by the product, thereby spreading the overhead costs over more units.
• B) Activity costs are considered relevant for decision-making because the cost of an activity will be avoided if the activity is eliminated.
• C) In highly automated environments where companies produce many different products with varying levels of production, activity-based cost drivers are superior to volume-based drivers.
• D) Activity-based cost drivers produce a better cost allocation than volume-based drivers because they distribute only relevant costs to the appropriate products.

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Definitions:

Deaf and Blind

Refers to individuals who have impairments in both hearing and vision, significantly affecting their communication and learning methods.

Facial Expressions

The movements or positions of the face that convey emotional states or reactions to situations.

Trial and Error

A problem-solving method that involves attempting different solutions and eliminating those that do not work, to find the one that does.

Darwin

A naturalist known for his theory of evolution through natural selection.