1) Which of the following statement is true?

a. activity-based costing is a more detailed and complex costing method than is JIT costing

b. Activity-based costing and JIT costing are incompatible

c. Activity-based costing is a simplified cost system that does not track costs through the sequence of manufacturing operations

d. All of the above are true

2) Which of the following is a required step in an ABC system?

a. Estimate the total direct costs of each activity

b. Compute the overhead rate

c. Identify the costs

d. Obtain the actual quantity of each allocation base used by the cost object