Which of the following statements regarding department costing and ABC is/are correct?

I. Department costing systems always properly recognize the drivers of costs within departments.

II. Emphasizing activities leads to more focused and homogenous costs pools.

III. Emphasizing activities aids in identifying cost-allocation bases for activities that have a better cause and-effect relationship with the costs in activity-cost pools.

IV. Some companies have evolved their costing systems from using a single indirect cost rate system to using separate indirect cost rates for each department.

V. ABC systems, with their focus on specific activities, are a further refinement of department costing systems.
1. I, II, III, IV
2. I, III, IV, V
3. II, III, IV, V
4. I, II, III, V