MC Qu. 79 Which of the following statements is incorre... Which of the following statements is incorrect? O An activity-based costing system uses more cause-and-effect relationships in tracing costs than does a traditional cost allocation system An activity-based costing system first assigns or traces costs to the departments in which products are made O The hierarchical categories into which activities are grouped are unit-level, batch-level, product-level and facility-level activities. O The total amount of unit-level costs changes in proportion to the number of units of product made