Which of the Following Statements Concerning Activity-Based Costing (ABC)is Not

question 34

Multiple Choice

Which of the following statements concerning activity-based costing (ABC) is not true?

• A) It has been introduced to overcome distortions in costing multiple products which occur when a single base is used to apply overhead to products.
• B) ABC is cheaper and less time consuming to implement than traditional costing systems.
• C) Overhead costs are accumulated by activities and then assigned to cost objects using a different cost driver for each activity.
• D) ABC can be applied in service businesses as well as in manufacturing businesses.

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Definitions:

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A business operated from the owner's home, often characterized by lower overhead costs and flexible working hours.

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