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

Multiple Choice

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

A) It is based on the concept that a single cost driver can drive all overhead costs.
B) It is based on the concept that activities drive overhead costs.
C) It is based on the concept that unit-level costs drive all overhead costs.
D) It is based on the concept that either the number of direct labor or machine hours incurred drives all overhead costs.