Which of the following statements is false? Which of the following statements is false? Activity-based costing system is always preferred over a traditional or departmental system. If physical units were used instead of equivalent units in calculating the per unit cost, the per unit cost would be undercosting. Manufacturing overhead variances arise from the POHRs utilizing estimates at the beginning of the year, and the actual costs at the end of the year differing. Total equivalent units will always be less than total physical units. Period costs are excluded from the cost of goods sold schedule, job-order cost sheet, and processing costing steps