Which of the following statements about Activity Based Costing $($ABC$)$ is not correct?

Group of answer choices

The ABC hierarchy of activities consists of two categories: batch or product$-$level activities.

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.

To compute an activity rate, divide the total activity cost by the total activity driver.