Which of the following is correct about ABC? O It is inexpensive to implement and operate than the traditional method. It assigns indirect costs to products and services based on the activities required. O It uses a single predetermined overhead rate calculated from estimates of the total manufacturing overhead cost and the total amount of cost driver. O It works best with companies that produce only one product. Which of the following statements about Activity Based Costing (ABC) is not correct? An activity cost driver should ideally have a cause-and-effect relationship with the underlying activity. The ABC hierarchy of activities consists of two categories: batch or product-level activities. O When forming activity cost pools, the goal is to create as few cost pools as possible, while still capturing major activities. O To compute an activity rate, divide the total activity cost by the total activity driver. Which of the following statements about total quality management is correct? O Prevention costs are incurred to keep quality problems from happening in the first place. External failure costs occur before a defective product makes its way into the hands of the customer. Legal fees and fees for damages are associated with appraisal costs. Internal failure costs result from defects that are discovered after the product has made its way into the customer's hands