Which one of the following statement is true?

I.

Most organizations that use ABC have two costing systems-the official costing system, which is used to prepare external financial reports, and the ABC system, which is used for internal decision making and for managing activities.

II.

When combining activities in an activity-based costing system, activities should be grouped together at the same level. For example, batch-level activities should not be combined with unit-level activities.

III.

Unit-level activities arise as a result of the total volume of production and are performed each time a unit is produced.

IV.

Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labour hours.

V.

The first-stage allocation in activity-based costing is the process by which overhead costs are assigned to products before they are assigned to customers.

VI.

Activity rates in activity-based costing are computed by dividing costs from the first-stage allocations by the activity measure for each activity cost pool.

VII.

In the second-stage allocation in activity-based costing, activity rates are used to apply costs to products, customers, and other cost objects.

VIII.

An activity-based costing system is generally easier to set up and run than a traditional cost system.

IX.

Activity-based costing is a costing method that is designed to provide managers with cost information for strategic and other decisions that potentially affect only variable costs.

X.

In activity-based costing, as in traditional costing systems, non-manufacturing costs are not assigned to products.