单选题
The following statements have been made in relation to activity-based costing:
(1) A cost driver is a factor which causes a change in the cost of an activity
(2) Traditional absorption costing tends to under-estimate overhead costs for high volume products
Which of the above statements is/are true?
【正确答案】
A
【答案解析】Only the first statement is correct. Traditional absorption costing tends to over-allocate costs to high volume products, not under-allocate them.