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Activity-based costing (ABC) is a costing method that provides managers with cost information for Multiple Choice O preparing financial reports for external parties. strategic and other decisions that potentially affect capacity and therefore "fixed" as well as variable costs. identifying relevant costs when choosing between alternatives. identifying the net present value of future cash flows associated with investment opportunities. Which of the following statements is true? Multiple Choice First-stage allocation assigns overhead costs to activities. First-stage allocation assigns activity costs to products or customers. First-stage allocation assigns direct materials and direct labor to products. First-stage allocation redistributes organization-sustaining costs to the batch-level and product-level activities. Which of the following statements is true? Multiple Choice Activity rates are only used to allocate batch-level costs to products. O An activity rate is computed for each product that a company produces. Activity rates are used in first-stage allocation. 0 Activity rates are used in second-stage allocation