Select the incorrect statement regarding the use of cost drivers in activity$-$based costing systems.

Multiple Choice

ABC's use of multiple cost drivers will produce less accurate unit costs when a company produces many different products that require different types and levels of overhead costs.

Volume$-$based drivers are most appropriate for costs that are affected by the number of units produced.

An arbitrary cost driver must be selected when allocating facility$-$level activity costs.

ABC uses volume$-$based and activity$-$based cost drivers.