Indicate whether the following statements are true or false.
1. The reasoning behind ABC cost allocation is that products consume activities and activities consume resources.
2. Activity-based costing is an approach for allocating direct labor to products.
3. In today’s increasingly automated environment, direct labor is never an appropriate basis for allocating costs to products.
4. A cost driver is any factor or activity that has a direct cause-effect relationship with resources consumed.
5. Activity-based costing segregates overhead into various cost pools in an effort to provide more accurate cost information.