Which of the following statements about activity-based costing is false?

• Activity-based costing is most appropriate for a firm that produces similar products that use similar resources.

• Activity-based costing requires a two-stage allocation of costs.

• Activity-based costing categorizes costs as unit-level, batch-level, product-level, or organization-sustaining.

• Activity-based costing can be used for manufacturing, administrative, or selling costs.