2. Identify the false statement regarding traditional costing systems: A. Traditional costing systems use a single predetermined overhead rate to assign overhead costs to products. B. A job order costing system would likely use direct labor cost or hours as a relevant activity base when assigning overhead costs to its products. C. A process costing system would likely use machine hours as a relevant activity base when assigning overhead costs to its products. D. Traditional costing systems are more accurate in their tracking of overhead costs than other systems. 3. The first step in using activity-based costing is to: A. Assign overhead costs to products. (B. Identify the activities involved in the manufacturing of specific products, and classify the overhead to cost pools. C. Compute the activity-based overhead rate for each cost driver. D. Identify the cost driver that has a strong correlation to the costs accumulated in the cost pool.