Question 11 Following is a list of statements. Identify each statement as true or false. 1. A product's cost can be estimated most accurately when this cost can be traced directly to the product produced or the service provided 2. Overhead costs are the easiest costs to determine, because they can be traced easily to the product. 3. Activity-based costing (ABC) is an approach for allocating direct labour to products 4. An activity cost pool is any factor or activity that has a direct cause-effect relationship with the resources consumed 5. Machine hours and direct labour hours are examples of cost drivers. 6. As manufacturing processes have become more automated, more companies have chosen to allocate overhead on the basis of direct labour costs 7. When overhead cost allocation systems were first developed, it was widely accepted that there was a high correlation between direct labour and overhead costs. 8. Traditional costing systems allocate costs to departments or jobs. 9. Activity-based costing is a one-step costing systenm 10. A traditional costing system allocates overhead by means of multiple overhead rates in each department