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