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 storage costs.
B) An activity cost pool collects costs related to the same activity.
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.
E) ABC uses a single overhead rate.