Which of the Following Statements Is Incorrect

question 112

Multiple Choice

Which of the following statements is incorrect?

• A) An activity-based costing system uses more cause-and-effect relationships in tracing costs than does a traditional cost allocation system.
• B) An activity-based costing system first assigns or traces costs to the departments in which products are made.
• C) The hierarchical categories into which activities are grouped are unit-level, batch-level, product-level, and facility-level activities.
• D) The total amount of unit-level costs changes in proportion to the number of units of product made.