Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) An activity-based costing system uses more cause-and-effect relationships in tracing costs than does a traditional cost allocation system.
B) An activity-based costing system first assigns or traces costs to the departments in which products are made.
C) The hierarchical categories into which activities are grouped are unit-level, batch-level, product-level, and facility-level activities.
D) The total amount of unit-level costs changes in proportion to the number of units of product made.