True or False

A cost object's consumption of activities determines how much overhead cost will be allocated to it when using activity-based costing The traditional method is less expensive to use than the activity based method. Activity-based costing is based on the assumption that costs can be identified reasonably well with activities, and activities can be identified reasonably well with products The complexity of an activity based system depends on the intended use of the information it provides. The traditional method allocates overhead costs to cost objects based on the object's consumption of one particular activity. Activity-based costing works well for assigning overhead costs to products, but can also be used to allocate costs to other types of cost objects such as services, processes, etc. The rates used by activity based costing for applying overhead to products do not need to be recalculated each year as they do when using the traditional method. Direct costs can be better allocated to products or services if activity-based costing is used instead of direct charging