Final answer:
Activity-based costing is not based on the amount of time employees devote to activities, but rather on the activities performed and the consumption of those activities by products or services.
Step-by-step explanation:
False. Activity-based costing is a method of cost accounting designed to allocate costs across particular business processes according to the different activities performed, rather than the amount of time employees devote to those activities. It identifies and assigns costs to activities and then allocates those costs to products or services based on the products or services' consumption of the activities. This method provides a more accurate way to determine the true cost of producing a product or service.