Select the Incorrect Statement from the Following

question 60

Multiple Choice

Select the incorrect statement from the following.

• A) If overhead costs are allocated on the basis of 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:

Always

A term indicating a constant or unchanging condition.

Data Mining

The process of using procedures from statistics and computer science to extract useful information from extremely large databases.

Large Data Bases

Comprehensive collections of data that can be massive in volume, designed to allow for the storage, retrieval, and management of large amounts of data.

Decision-Making

Decision-Making involves selecting the best option from a set of alternatives based on criteria, often requiring problem-solving and critical thinking.