1. Activity-Based Costing (ABC) is a two-stage method of cost assignment that assigns overhead costs to key activities, and then assigns those costs to products or services based on their use of those activities.

   True

   False

2. The number of purchase orders is a reasonable basis for allocating to jobs the purchasing department costs.

   True

   False

3. Over the past century, overhead costs have increased as a percentage of total product cost.

   True

   False

4. ABC is useful for product costing, but traditional costing is superior for customer profitability.

   True

   False