0 0 0 0 0 Indicate whether the following statements are true or false. (a) (b) (c) (d) (e) The reasoning behind ABC cost allocation is that products consume activities and activities consume resources. Activity-based costing is an approach for allocating direct labor to products. In today's increasingly automated environment, direct labor is never an appropriate basis for allocating costs to products. A cost driver is any factor or activity that has a direct cause-effect relationship with resources consumed. Activity-based costing segregates overhead into various cost pools in an effort to provide more accurate cost information.