Which of the Following Statements Is True of Activity-Based Costing

Multiple Choice

Which of the following statements is true of activity-based costing?

A) ABC ignores the allocation of marketing costs.
B) ABC classifies some indirect costs as direct costs.
C) ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.
D) Activities are the cost objects of the second stage of ABC.