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

Multiple Choice

Which of the following statements is true concerning activity-based costing (ABC) ?

A) ABC can distort product costs.
B) ABC fails to recognize that the demand for overhead activities is driven by product-sustaining activities.
C) ABC permits management to focus on the increased efficiencies and better resource utilization.
D) ABC first assigns costs to products,then to cost pools.