Which of the Following Statements About Activity-Based Costing Is NOT

Multiple Choice

Which of the following statements about activity-based costing is NOT true?

A) ABC is useful for allocating marketing and distribution costs.
B) ABC is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.
C) ABC seeks to distinguish batch-related, product-sustaining, and business-sustaining costs, especially when they are not proportionate to one another.
D) ABC differs from traditional costing systems in that products are not cross-subsidized.