Which of the following statements does not represent the logic of an ABC system?
A)Activity cost allocation bases are the activity cost drivers of costs in the activity cost pools.
B)A strong cause-and-effect relationship between overhead costs and the cost allocation base is essential.
C)The requirement to measure cost allocation bases of different activities used by different products is essential.
D)The overhead used by different products is not important, as it is a fixed cost.
E)A greater level of detailed information concerning costs will help organizations be more efficient.

Question

Quizplus · Accepted Answer

This statement is incorrect because ABC system recognizes that overhead costs are not necessarily fixed and allocates them based on usage by different products or activities.

Which of the Following Statements Does Not Represent the Logic