The cost of continued research and development for a product is best classified as a batch-level activity unit-level activity product-level activity company-wide activity Which of the following statements about ABC is incorrect? An activity cost driver should ideally have a cause-and-effect relationship with the underlying activity. When forming activity cost pools, the goal is to create as few cost pools as possible, while still capturing major activities. Activity-based costing classifies activities into two categories either unit-level activities or facility-level activities. To compute an activity rate, divide the total activity cost by the total activity driver