1. tivity- costing (AB based (a) ean be used only in a pracess cost system. (b) focuses on mits f production. (c) focuses on activities needed to produce a good or pentorn a serice. d) uses only a single basis ofallocation. 2. The first step in the development of an activity-based costing system for a service company is: (a identify and classify activities and allocate overhead to cost pools (b) assigu overhead costs to produels. (e) dentify cost drivers. (dy compute overhead mtes. 3. A relevant facility- cost driver for beating costs is (a) 1aachive bouns. (b) direct Inaterials. (e) floor space. (d) direct labor cost, 4. Any Activity that causes resources to be consumed is called a: (a) just-in-time activity, (b) facility-level activity. (e) st diiver. (d) lue-added activity. 5. Under just-in-time processing: (a) raw materials are received just in time for use in production. (b) subass bly parts are coupleted just ia time for use assembling finished good (e) finished urads are pleted just in tint to be sold. d) All of 5. The primary objective of just-in-time processing is to: (n) accumulate overhead in activity cost pools. (b) eliminate or reduce all manutacturing inventories, (c) identify relevant activity cost drivers. (d) ideatily lue-added activities