Which of the following statements is FALSE?
A) Many traditional costing systems can distort product costs and profitability.
B) Activity-based costing systems tend to be more costly than traditional costing systems.
C) Many traditional costing systems tend to combine various costs into a single cost pool.
D) Activity-based costing systems tend to use fewer cost pools than does a traditional costing system.

Question

Quizplus · Accepted Answer

The statement that activity-based costing systems tend to use fewer cost pools than does a traditional costing system is false. In fact, the opposite is true - activity-based costing systems tend to use a larger number of cost pools, which allows for more accurate allocation of costs to specific products or activities.

Which of the Following Statements Is FALSE