Answer :
The statement provided is:
a. true
Activity-based costing (ABC) is indeed a method used to accumulate and allocate factory overhead costs based on the specific activities that contribute to those costs. Unlike traditional costing methods that allocate overhead based on a single predetermined allocation base (such as direct labor hours or machine hours), ABC identifies and assigns costs based on the actual activities that drive overhead expenses. This approach provides more accurate insights into the true costs associated with producing goods or services, particularly in complex manufacturing environments where overhead costs are influenced by various activities rather than just volume metrics like labor or machine usage.
