One of the methods to allocate overheads is step method. Which of the following statements is incorrect with respect to this method of

allocation of overheads?

A$.$ Step method is generally used when there is more than one product and the overheads are allocated on a step method starting

from the product with the highest volume

D B$.$ Activity based costing $($ABC$)$ is used to identify the most appropriate cost driver to allocate the different overhead costs

C$.$ It is appropriate when there is interdependency of service providing departments

D$.$ Prioritizing the services incurring the overhead costs is the primary requirement of the step allocation method