Which of the following statement(s) regarding activity-based costing is(are) true?

I. Use of activity based costing improves cost tracing by using more cause-and-effect relationship to assign indirect costs to activity centers.

II. An activity based system is characterized by multiple cost pools and multiple volume and activity cost drivers.

III. Activity-based costing can cause distortion of cost, assigning too much cost to some products and too little to others.