Activity-based costing (ABC): A. It can be used only in a process cost system. B. Focuses on units of production. c. Focuses on activities performed to produce a product. p. Uses only a single basis of allocation. QUESTION 2 The first step in the development of an activity-based costing system is: A. Identify and classify activities and allocate overhead to cost pools. 8. Assign overhead costs to products. c. Identify cost drivers. D. Compute overhead rates. Which of the following would be the best cost driver for the assembling cost pool? A A number of product lines. B. Anumber of parts. cA Aumber of orders. D.Amount of square footage. QUESTION 4 A frequently cited limitation of activity-based costing is: A ABC results in more cost pools being used to assign overhead costs to products. 8. Certain overhead costs remain to be allocated by means of some arbitrary volume-based cost diver such as labor or machine hours c ABC leads to poorer management decisions D.ABC results in less control over overtead costs. QUESTION S Any activity that causes resources to be consumed is called a A Just-in-time activity B. Facility-level activity. c. Cost driver. D. Non-value-added activity