Which of the following statements is FALSE?
A)An unallocated cost for one company may be a direct cost for another company.
B)The cost of a system for tracing costs to cost objects should be less than its expected benefit.
C)A cost driver is a measure that causes the costs in a cost pool.
D)Because of the rise in direct costs for most companies,allocating direct costs is important in most companies today.

Question

Quizplus · Accepted Answer

Allocating direct costs is not necessarily important for most companies today as some companies may not have a significant amount of direct costs to allocate.

Which of the Following Statements Is FALSE