True / False 6. Activity-Based Costing assumes that most overhead costs can be easily allocated based on one or two drivers. True / False True / False True / False 7. The total costs for a company are composed of both fixed and variable costs. 8. Break-even is the point at which total sales equals total variable costs. 9. One of the advantages of variable costing is that this costing method maybe be used for management decisions as well as external reporting. 10. Absorption costing is required for reporting by GAAP and IRS. True / False