Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) Under traditional costing, product cost distortions will be relatively insignificant if overhead costs are a small proportion of product cost.
B) Activity-based costing will significantly improve the product cost accuracy where overhead costs are a small proportion of total costs.
C) Activity-based costing will significantly improve product cost accuracy where there is significant product diversity.
D) Upstream and downstream costs are often a significant part of a product's costs.